Steel Hebei province increased by 20%

Competition in the first half profit of local industry: resource province suffered "cold"
For it is in Hebei Province, the first half of this year, cumulative production of crude steel up to 99.8964 million tons, and the first half of last year compared to a total of 98.895 million tons of production rise, not fall, and the cumulative production of more than second-ranked Jiangsu Province and ranked the sum of the three Shandong Province. Once Galvalume steel coil prices fell significantly, to pressure it faces capacity will increase.
Industrial profits over the first half of Shanxi, Heilongjiang, Xinjiang and other resources in the province scale growth is negative, the worst reaches -892%, while heavy industry in Hebei province was rapid growth, above-scale industrial profit growth of 20%, which is what reason?
On the one hand, in the background to capacity, had to endure a lot of resources in the province, "labor pains"; on the other hand, in the first half of this year as the representative of China Aluzinc Steel Sheet Coil prices soaring prices of industrial products, the success of "saved" Steel Hebei province.
National Bureau of Statistics data show that from January to June the national steel (ferrous metal smelting and rolling processing industry) profit rose 83.6%, just below the oil industry.
However, this upward trend could continue still doubtful. For it is in Hebei Province, the first half of this year, cumulative production of crude steel up to 99.8964 million tons, and the first half of last year compared to a total of 98.895 million tons of production rise, not fall, and the cumulative production of more than second-ranked Jiangsu Province and ranking third of the sum of Shandong Province. Once steel prices fell significantly, to pressure it faces capacity will increase.
As for the country's resources in the province, the economic transformation to realize, is the road of sustainable development.
Resources in the province's industrial profits growth "diving"
NDRC figures show that this year more resources in the province scale industrial profit decline is relatively large.
Data show that Shanxi large-scale industrial loss 5.16 billion yuan in the first half of this year, than last year loss of 4.64 billion yuan increase year on year decline to reach 892%. Heilongjiang industrial profits fell 70.9%, down by 61.5% year on year in Qinghai, Xinjiang fell 31.8%, down by 27.4%, Liaoning, Shaanxi, a decrease of 16.5%.
21st Century Business Herald reporter learned that the decline in profit growth in these areas, instead of relying on some of the main industry profits drop about. For example, this year from January to June of coal mining and washing industry profits fell 38.5%, electricity, heat production and supply industry decreased by 3.7%, oil and gas extraction industry from the same period a profit to a loss.
Shanxi, Shaanxi and Heilongjiang provinces and the economic relevance of these industries greater.
For example, analysis of Shaanxi Bureau believed that from January to June, Shaanxi energy industrial added value fell by 1.8% (lower than the energy industry 15.7 percent), the first quarter fell 5.1 percentage points, respectively, over the same period last year and full-year years down 1.9,3.3 percentage points, pull down the province's above-scale industrial added value growth rate 0.8 percentage points higher than last year and the year were reduced 0.9,1.6 percentage points last year, the province's industrial economy a greater impact.
In this regard, Northeast Normal University School of Geographical Sciences, Professor Song Yuxiang believe that industrial profits drop entire resources in the province is a big trend, China is now ongoing structural adjustment, which will be difficult to avoid pains.
He noted that resources in the province still have to go to the future production capacity, excess capacity is a big burden. Now heavy industry province are facing this dilemma.
Circumstances of resources in the province and different industrial profit growth rate higher than the size of most of the provinces, industry concentrated in the downstream sector.
For example, the first half of this year, above-scale industrial profits grew faster than in the provinces, Anhui, up 18.2 percent, an increase of 17.2% in Chongqing, Guangxi, an increase of 16.9%, 16.6%, Fujian, Guangdong, 16.3%, 14.3% growth in Zhejiang.
21st Century Business Herald reporter was informed that currently Anhui, Guangdong's industrial structure in a larger proportion of household appliances, a large proportion of heavy industry in Guangxi, a large proportion of car Chongqing, Zhejiang is a large proportion of high-tech industries.
The industrial profit growth higher in these areas, and early transition-related. In recent years a number of provinces in the emerging industry has done a lot of work, new industries have been leading the economic development of the signs.
"Coastal industrial structure is reasonable, do not rely solely on the resources. They are high-tech industrial development, manufacturing, coal, crude oil prices reduce the cost and makes the coastal areas, which led to a rise in profits." Song Yuxiang said.
"Iron Man" save Hebei
And the plight of other resources in different provinces, Hebei province steel industry profits in the first half of this year there has been a 20% increase, the country ranked first.
Data show that from January to June of Hebei crude steel and steel production was 99,896,400 tons, 130,510,800 tons, the increase over last year's 98.895 million tons, 124,609,000 tons are. In the country, the cumulative production of crude steel and rolled steel in the first half of this year was 399.563 million tons, 559,921,000 tons, crude steel and steel products in Hebei accounted for 24.75 percent of the country, 22.25 percent.
This makes a lot of profit in Hebei Province steel market in the first half of this year. Data show that the first half of this year, steel prices had the highest station on the 3,000 yuan / ton mark, which since August 2014 the highest price, so that a large number of steel plants recover "money machine" character.
But a senior steel analyst Ma P believes that steel prices to rise no sustainability. "A rise in steel prices, the yield rises, and now two Shougang, sunshine fine steel base respectively to 1,000 tonnes of steel production in the future, new capacity and eliminate a competitive game between the backward production capacity, the Competitiveness weak industries eliminated out of a long process. It is destined to always keep the steel price fluctuations in the cost of steel wire. "
The Chinese Academy of Social Sciences Research Associate Ye Zhenyu industry believes that the improvement of Hebei, and after pulling the steel industry improved real estate related.
In addition, Hebei appearance of another situation: the equipment manufacturing industry than iron and steel industry to become the first large. Hebei Bureau of Statistics data show that the first half of this year, the equipment manufacturing industry accounts for the first time exceeded the proportion of above-scale industrial iron and steel industry, reached 25.3%, 0.1 percentage points more than the steel industry.
Since part of the equipment manufacturing industry downstream steel industry, from upstream to downstream crude steel industry profits gradually changed for the better, it also makes good Hebei profit transfer is possible, but sustainability remains to be seen.
Ye Zhenyu pointed out that the share of manufacturing equipment Hebei steel industry more than just a stage of the case, it can not be judged successful transition. "Because of the relatively large steel last year, Hebei compressed scale of production capacity, compared to the equipment manufacturing industry just ushered in a phase of great development of large investment, it is difficult to say the equipment manufacturing industry has exceeded the steel industry, because the equipment manufacturing or in the large investment stage, the next step of development of the market situation is not very clear. "
He believes that the resources in the province should consider restructuring. "For example, the future of the information industry in Shaanxi this one has a relatively good foundation, coupled with Xi'an universities, research institutions, university students and other resources in cities across the country also should be in the forefront of the transformation of these resources in Shaanxi province should be move in this regard, be carried out to catch up with the development by leaps and bounds. "he said.
But Ye Zhenyu acknowledged that for resources in the province, in the short term to give up those resources industries hard. "The next step may be a stage of non-resource-based industries and the coordinated development of resource-based industries, and promote the coordinated development of social resource-based industries."
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