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    The next outlet steel companies are restructuring and electricity suppliers

           Summary: Look at past financial statements steel companies, earnings per share of 1 yuan from last year's loss per share of more than a few dollars, the change can be described as "earthshaking." Well, is not steel companies since it devastated it? I believe that the steel industry has passed the most difficult period, iron and steel companies are standing on the next outlet, the outlet is restructuring and electricity suppliers
          Iron and steel enterprises in 2000 - is the history of the most glorious decade of 2010, steel prices experienced a soaring from 2,000 yuan to 6,000 yuan per ton per ton, BHP Billiton iron ore producing countries of Australia, Rio Tinto and Brazil's CVRD Thus also in China who made a fortune. Look at past financial statements steel companies, more than $ 1 per share from profit to loss per share last year, a few dollars, the change can be described as "earthshaking." Well, is not steel companies since it devastated it? I believe that the steel industry has passed the most difficult period, iron and steel companies are standing on the next outlet, the outlet is restructuring and electricity providers.
           Lack of learning from history summary
           History of China's economic development, so far, both components of the planned economy, but also there is a market driven economy. History of iron and steel enterprises can be said that China's economic development in the history of a classic. By 2012, the iron and steel enterprises to projects require NDRC approval, which is a typical feature of a planned economy, in 2002-2012, the government on the one hand the name of prevention market was overheated, leading to overcapacity on the cover, on the one hand is still increasing Reply efforts, resulting in iron and steel production (900 million tons) greater than the actual consumption capacity (700 million tons), said steel overcapacity is caused by excessive government approved the project result is not too. NDRC there continue to intensify efforts in steel projects approved, and the Ministry of Industry here in increasing the elimination of backward production capacity, lack of coordination between ministries pole.
          At present, China's steel enterprises 2450, almost every province has a decent iron and steel enterprises, which is approved by local building requirements, steel firm in those years in China as a world's largest steel consumer, but not pricing iron ore price from around $ 30 in 2000 rose to $ 170 in 2010, and in the iron ore pricing model, China from a long association ore into a spot ore from Baosteel as a negotiator on behalf of the CISA come forward negotiations were fruitless, frustrated. Because Chinese buyers too much, between steel companies against each other on price negotiation is one fundamental reason. Plus from Japan was upset, price negotiations may not succeed.
          In the new Chinese government decided to slowdown after all this was to change, we see a hard time domestic steel prices, but Australian enterprises and Brazilian companies is not better than, the world economic order in complete control in the hands of the Chinese government. The new government's "along the way" strategy, a major iron and steel enterprises are facing a cyclical opportunity again, because China all the way to the area along the 60 countries to establish relations of cooperation, international cooperation in capacity in the coming decades will be China's major foreign economic cooperation form. But timely sum up past experiences and lessons are still worth it, otherwise, the steel companies still can not escape the cyclical rise and fall of fate. Compared to the past decade has brought a brilliant real estate and steel mills flourished, this time from a much longer time, I expected to have more than 50 years of prosperous period, this period is 89 years given in accordance with Fibonacci The resulting rise cycle estimates, China has experienced 34 years of economic upswing, there are still 55 more years of thriving economic rise, while iron and steel industry as the economy, basic industries, should take the lead in response to this economic cycle. But this requires conscientiously sum up the lessons, to find effective countermeasures to deal with external variables, which is restructuring, through internal reorganization to improve the bargaining power of China's iron ore imports.
        In the last round of China's economic cycle, overseas import agreement negotiations is the state-owned enterprises in overseas equity acquisition of state-owned enterprises is, however, the aluminum as one of the largest state-owned enterprises in the tender offer in the negotiations and has repeatedly suffered a setback . Why? Because those resource-exporting countries worry about being Chinese state-owned enterprises control, plus from the United States from instigation ordinary equity acquisition into a children's event with political overtones. Which the Chinese state-owned enterprises hostile to the number of the United States, Canada and Australia, that was the most pay good Korea and China, and the acquisition of a large number of Chinese mining enterprises, but also to interrupt. In other countries, the Chinese workers are often beaten for no reason other issues of local underworld were also frequent reports. Practice has proved that, through equity acquisition approach is not an effective way, only hire Chinese workers engaged in ore mined is not a permanent solution. Taking into account the interests of both sides, eliminate political factors in order to make cooperation more durable.
          Recombinant bigger and stronger steel prices
          Since the new government reform, for central and local government enterprises directly under the approach taken by the SOE reform, which, generally, the intention is: will these companies do not involve state secrets, to take the mixed ownership of ways to make private capital to fully enter the enterprise and by means of asset securitization, ESOP, etc. to achieve flexible operation, to prevent the loss of state assets.
         In addition, taking into account environmental factors, the future development of the iron and steel enterprises must change to take into account the development of environment-friendly way.
          These reforms and the development requirements of the decision, many and scattered development no longer meet the development needs of the future economy, excessive competition have damaged the interests of all, it must be curbed.
           China vigorously again is impossible to drive the real estate business, in fact, China's urbanization rate has been close to 60%, the urbanization rate of 70% of the final calculation, the annual growth of 1 percent urbanization rate calculation, only the domestic real estate driving demand for steel, leaving only 10 years, demand for steel is no longer the property of a growth pole, but more of a manufacturing automobiles.
           Consider environmental protection, small businesses are facing technical and financial bottlenecks, small iron and steel is not the future direction of China.
           That is, the steel companies are now faced with many and scattered production, pollution is serious, serious waste of resources, low productivity, and no awkward bargaining power of foreign imports of raw materials, while also facing the shortage of high-end applications in production technology and environmental protection low investment and other issues. Thus the steel company's future should be resolved the problem of many and scattered through mergers and acquisitions, and should accelerate the transformation, improve the application level of technology in the automotive and other manufacturing applications, increase investment in environmental protection efforts.
         In 1981, US steel companies major restructuring, has become a landmark event V3.0 of American industrialization, China is now at such a time.
           Past geographical requirements of iron and steel enterprise projects approved practice, no longer meet the requirements of future industrial development, China to go the road of industrialization, perhaps for iron and steel enterprises must first industrial reforms. Break the geographical restrictions, conducted a nationwide reorganization and integration has become more urgent. The establishment of 15 large metropolitan city planning in accordance with China envisaged, steel companies are in on such an outlet. It was expected, is currently involved in the iron and steel enterprises in central enterprise restructuring is in full swing and are expected to stay only 3-5 central enterprises, including local governments and private companies, including steel enterprises to retain only 300, which means that from 2450 steel prices to 300 steel enterprises, to reduce the 2150 restructuring rate reached 87%, close to 90%.
          By reading reports of listed companies can learn, Fushun Special Steel (600399, stock it) as more than 80 percent of products for the military needs of special steel enterprises, has been a financial support from the state, it is expected to be three technical transformation, in which a project has the end of the second phase of technological transformation underway, Fushun Special Steel may become the central enterprises to retain a representative enterprises. As a large steel enterprises Baosteel Group, it is also being involved in the reorganization. Shandong Iron and Steel (600,022, stock it) is undergoing a transformation of the way, its acquisition of Rizhao quality steel project moves indicate Shandong Iron and Steel has begun to shift on a car-based production and service, due to the special geographical Shandong Iron and Steel, together with Shandong Economy It has been in the country before the semi-finals, the possibility of a separate substantial reservations. Also, consider the docking along the way and the western development, some of the steel prices could face an excellent location west of the eastern region to manufacture automotive steel and high-end products, the production of crude steel in the western region of conjecture based on oil, however, birth.
          The capital markets over recent government-controlled shares in the enterprise holdings, indicating mixed-ownership SOE reform is being implemented, while a number of listed block trading company shares, indicating that private capital has been far-sighted approach to absorb, especially some small State-owned enterprises, there are clearly nascent force disk access, such as Bayi Iron & Steel (600581, stock it) is very obvious. Xinjiang Bayi Iron & Steel is located, is the largest state-owned enterprises in Xinjiang, a large shareholder holdings twice a month, but the price is step higher, observe the disk can also be found, then set the power is very strong, very prominent phenomenon grab chips.
           Recently, the stock market crash now, of which there reported that "industrial capital of The Great Escape," the report said, the last two months, the reduction of state-owned capital has reached 500 billion yuan, and that the reduction of state-owned capital is one of the stock market crash culprit . These analyzes, the apparent lack of foresight, no in-depth understanding of the state-owned enterprise reform, Imagine, now state-owned market capitalization has reached 15 trillion, 500 billion yuan of state-owned capital reduction can be great escape it? 500 billion yuan, in the recent turnover in Shanghai and Shenzhen, and even half of the Shanghai stock market turnover of less than one day, it is only 3.3 percent of state-owned stock market value. Moreover, the state capital can not all be thrown in a short time, the future whether the central enterprises, state-owned enterprises or local, can not lose a controlling position in a short time, the state-owned holding shares not underweight, and how to achieve mixed-ownership? State-owned shares of throws, the best time is the private capital to enter, otherwise, after a few years, the stock price of those shares will be higher, private capital began to lose the best chance to enter, because most state-owned shares the stock is still quite cheap. In 2007 China's GDP is only 24.6619 trillion yuan, while in 2014 China GDP, according to World Bank estimates that 51 trillion yuan, China is also growing at an annual rate of about 7 per cent growth of the future of the stock will be significantly higher than the 2007 record of 6124, in fact, a considerable number of state-owned shares of the stock price did not reach 2007 levels, to double or even triple the future share price in 2007 is entirely possible.
           "Internet + Steel" to achieve industrialization V4.0
          Not long ago, Premier Li Keqiang at the State Council executive meeting on the development of cross-border electricity providers to increase mode after insertion of e-commerce in the wings, the steel companies are faced with the "Internet + Steel," the new model of development. Baosteel Group was founded electronic business sales model, its sales have begun to grow significantly. With this model more and more recognized, the future may have more steel prices added to this business platform and will be a true portrayal of the iron and steel enterprise development of the Internet, and China may have to build more of such electricity supplier platform. The electronic business platform, which means the Internet has been integrated into the traditional model of enterprise development, restructuring + development of the Internet, is a new development model for future development of the iron and steel enterprises, it is the latest version of the Chinese industry V4.0 version.
    Moreover, the first to achieve Internet-based steel companies, is conducive to the promotion of "traditional industries + Internet" overall development model, which can be judged, China's industrialization V4.0, perhaps starting with the most basic steel industry industry began future Other industries can learn from the reform model.
          Overall, the steel industry restructuring, in line with the economic development needs, is the inevitable result of the development of the era, and Internet-based steel companies, then finally let China to realize industrialization V4.0. After the reorganization, China's foreign import price negotiations become unified with the bargaining power, but also reduce the resource waste and pollution, improve production quality and production efficiency. Join private capital, changes in state-owned enterprises due to the dominance of the drawbacks, making business more flexible, and can share the fruits of China's economic development.
            Steel companies are standing on the Restructuring and electricity suppliers the air, far-sighted investors will never give up this investment opportunity, real claim should belong to hundreds of billions of market capitalization steel companies, rather than alone tell a good story, Take a good name listed companies.
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