Steel Industry News

Hebei Iron and Steel Group

Japan, the leaders of Japan and South Korea met in Seoul, Chinese Premier Li Keqiang attended the speech at the conference, which referred to, we should focus on areas such as infrastructure construction, engineering machinery, building materials, electricity and other international production cooperation, build tripartite cooperation New brand.
For long-term downturn in the steel industry, international cooperation in capacity could have an impact on steel prices continued losses? Analysts pointed to the "Securities Daily" reporters that Japan and South Korea steel market is small, expand cooperation may have generated some positive outlet, help transfer some production capacity, but it does not address the serious overall industry overcapacity situation.
Li Keqiang said at the meeting, Japan and South Korea should give full play their respective comparative advantages, the capacity to carry out international cooperation. China is willing to be a complete industrial system, building and construction equipment manufacturing integration ability, good cost performance advantages and Korea-Japan high-end technology, with national development needs of the surrounding relative access, the focus in the areas of infrastructure construction, construction machinery, building materials, electricity, etc. international production cooperation and create tripartite cooperation.
Vice president of Shanghai Steel Union  to the "Securities Daily" correspondent pointed out, on steel demand, the Korean market demand for steel products in China will be bigger number. "In recent years the level of China's equipment manufacturing capacity and were quickly upgrade the quality and little difference between Korean products, but the price is low." So now there are a lot of steel enterprises are export to South Korea. Japanese demand for steel products in China is relatively low.
In fact, after the Ministry of Commerce has said that China-ROK FTA to benefit both enterprises and the public is a big thing, Korea will eventually have 92% of the elimination of tariffs on Chinese products, covering from 91% Chinese imports. China's textile and clothing, iron and steel, industries and enterprises, can further reduce the cost of exports to South Korea to improve market share in Korea.
However, 陈卫斌 also pointed out that although steel exports is increasing, but the profit obtained in steel prices is not significant. A set of data can illustrate the problem, in September this year, China's exports of steel 11.25 million tons, a new record high. Wang Liqun, vice president of China Steel Association has said that this year China's steel product exports are likely to more than 100 million tons.
Now the first nine months, medium-sized steel enterprises realized sales income of 2.24 trillion yuan, down 19.26%, the main business losses amounted to 55.271 billion yuan.
"Now the international market price of steel in a sense by the Chinese exporters pulled down." Chen Weibin said that export profits are reduced.
刘新伟 analysts accept the "Securities Daily" reporters, also said Japan and South Korea steel market is small, expand cooperation may have generated some positive outlet, help shift some capacity, but does not solve the whole industry can produce serious surplus situation.
In fact, in the face of weak domestic demand, the capacity to carry out international cooperation in the steel industry to resolve the problem becomes one of choice. This year in May, the State Council promulgated the "Guiding Opinions on Promoting the international equipment manufacturing capacity and cooperation", pushing steel production international cooperation capacity. In fact, some domestic steel enterprises have tasted the "going out" to carry out cooperation in capacity sweetness.
As a large steel production capacity, Hebei Iron and Steel Group to invest and build factories in foreign countries, sales channels lay terms, it has been the first to start a series of operations. Public information, last November, Hebei Iron and Steel Group and  high Holding Group signed an agreement, holdings of the world's largest steel trading and integrated service providers - JCDecaux Trade controlling stake in the company to 51 percent international; the same year in September, Hebei Iron and Steel Group with the South African Industrial Development Corporation, the China-Africa Development Fund signed the "South African Iron and Steel Group, Hebei Iron and Steel Project Cooperation Memorandum of Understanding."
"Overseas transfer of production capacity will not only Hebei Province, which is in line with national economic policy, will also be the future trend." People who are called Hebei Iron and Steel Group.
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