What kind of predicament is facing China's steel industry?

Abstract In the past ten years, China's steel industry has been in existence and development in cautious and warfare. Although the export volume of steel has continued to grow year by year, the scale of local infrastructure has been expanding year by year. However, the defects of steel products and steel quality have directly and continuously led to the long-term benefits of steel...
In the past ten years, China's steel industry has been in existence and development in cautious and war.

Although the export volume of steel has continued to grow year by year, the scale of local infrastructure has been expanding year by year. However, the defects of steel products and steel quality have directly and continuously led to the long-term dilemma of steel efficiency.

At the same time as the major enterprises turn to the system and explore the unfavourable market factors of cost and digestion, there has been a continuous surge in the global financial crisis. The glorious past of state-owned steel companies has become a history that can no longer be returned.

However, when everyone is at a loss to observe the developments, a number of local steel companies, including a large number of small and medium-sized enterprises, have been launched, and have been involved in the unsustainable market competition, causing large state-owned enterprises. The impact of the snow.

Nowadays, this competitive situation is not the case of your death and death, but the situation where everyone faces death and death.

In 2013 alone, few domestic large-scale steel companies were able to make profits. Even if profits were only meager profits, many key enterprises suffered losses in successive years, and losses of billions, billions, or even hundreds of billions have appeared one after another.

In large state-owned enterprises, including many small and medium-sized enterprises, the annual bank interest that needs to be paid is close to the loan itself. This situation is really heart-wrenching, and this is an unprecedented nightmare.

A brief review of the development of China's steel industry, especially the development of China's steel industry in the past decade, we seem to be able to find out the lessons we can learn. However, this is already a thing of the past. The huge industrial structure can be turned around and turned around. The enterprises that have gone bankrupt have undoubtedly a pile of scrap metal and iron and iron, and their asset losses are irreparable. Who is this, the loss is the bank, but also the state.

We say that the market economy is a competitive economy and there is nothing wrong with the performance of the market economy. However, the market economy is a fair and just economy. It is not an economy that digs the wall and mixes the sand and the evil road. If there are many large and small enterprises of different sizes and different management methods, they will not follow the rules. Such a market is not a market at all, and at best it is a underground black market.

Using the rules of the market economy to regulate and constrain the transactions under the black market, can it work? Isn't it a mess?

Obviously this is one of the big sticks!

SMEs can't go up

A state-owned enterprise, especially a large-scale joint enterprise, has accumulated a rich corporate culture in corporate behavior, which is the basic lifeline of sustainable development of enterprises. There are two missions of the enterprise or the mission of the enterprise: one is to produce qualified products that the society needs. The second is qualified personnel who create social needs. Everything in the enterprise is followed and manifested in these two basic aspects.

Here I want to mention SMEs in particular. What are the business, management concepts and strategic visions of SMEs? Can its technology, equipment, technology, safety, environmental protection, etc. support its market behavior? Can you guarantee the quality of the product? Obviously, this is a question that is very worthy of calm thinking and can basically be a big question mark.

If we insist on organizing and supporting such half-baked enterprises, let them compete in a highly polluting and high-energy situation, and waste resources and huge formal forces. I don’t know what their advantages are. What are their tools for winning the market? Can their strengths and sharps be placed on the table?

I am not against the development of SMEs, but I believe that we must first adapt to local conditions. Second, the structure should be reasonable.

The so-called local conditions are to develop according to the geographical characteristics of new construction, reconstruction and expansion. If there is no reliable mineral resources in this place, and there is no hydropower coal resource that can be effectively utilized, the mind will be on a million-ton steel project. The result is that “tofu is more expensive than meat.” Is this not a waste of money?

The so-called reasonable structure means that we must have a global mindset. Under the macro-strategic situation, we should review the situation and look for breakthroughs in the development and optimization of SMEs. Rather than planting vegetables like some farmers, this year's cabbage is sold in a wide range of cabbages. The loss of cabbage is also a few acres of land, and the loss of project missteps often exceeds 10 billion.

China's steel industry is indeed facing such a real operating environment. Even if you make 18 martial arts, you can't reverse the passive situation. Obviously, this is not something that the company itself can do well.

In the past few years, under the leadership and support of local governments, some cross-regional enterprises have continued to strengthen and reorganize in order to further enlarge and strengthen. In addition to monopolizing the steel sales market in these regions, there has been no The performance of rebirth, exploitation and occupation of larger markets has directly led some companies to sit still.

Steel is the lifeblood of industry. The dilemma of the steel industry directly reflects the dilemma of other primary, secondary and tertiary industries. The steel industry must not be able to break away from the national conditions and surpass the national strength. It must develop and grow under the strategy of a national chess game, rather than blindly launching, because of the serious excess of backward production capacity, resulting in wasteful waste of resources and devastating waste of national assets.

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