Steel industry restructuring rumors reproduction shaking
Introduction: The industry rumors that the steel industry restructuring reflects the level of implementation has not been very clear ideas, the state hopes to explore the way of mergers and acquisitions, the formation of China's steel industry sample of SOE reform.
"From a policy perspective, this consolidation trend may be there, but from the market point of view, not necessarily a positive." August 2, analysts 21st Century Business Herald reporter said so. Analysts say that before the media reported China may follow the example of the establishment of the South, CNR way, and the establishment of the South China Severstal Group day.
According to Bloomberg news agency quoted the sources said, the South Iron and Pre-Painted Steel Coil
Group will consist of currently being reorganized Baosteel Group and Wuhan Iron and Steel Group. Meanwhile, Shougang Group also plans to merge with the River Steel Group, created Severstal Group. Baosteel, Wuhan Iron and Steel Baosteel assets will be injected into the entity to become the South's Southern Steel Iron and Steel Group Corporation, a non-steel assets of the two companies will be injected into the Wuhan Iron and entities become Southern Steel Southern Iron and Steel Industrial Company Group.
In this regard, the above relates to the four steel companies have that knowledge, and within a number of industry sources also said that yet heard, Bloomberg also said manuscript, said the plan has not been finalized, there may be variable.
However, under the current state-owned enterprises reform and the production of iron and steel to the background, "does not exclude the national level there is such a consideration, but by means of mergers and acquisitions to production capacity, the steel industry, for the moment, and the effect may not significantly." Analysis Shi said China's steel industry, state-owned enterprises accounted for a higher proportion of the State can promote mergers and acquisitions have focused on the level of state-owned enterprises, but the need to eliminate excess production capacity mainly concentrated in small and medium-sized private enterprises, and some can not be implemented through national administrative power That is, if you wish to achieve the real purpose of capacity through mergers and reorganization of the way, the difficulty of implementing a little big.
Shougang Steel River merge difficult
Baosteel and Wuhan Iron and Steel restructuring is a foregone conclusion, at present, the two sides further restructuring program also specific planning, the message has not been released. The river and Shougang Steel is not the first time the merger news circulating in the industry.
"In the last round of SOE reform process, Hebei steel industry restructuring, the river had to try to merge the Shougang steel." Another source said the steel industry, but too difficult integration between the two, the matter eventually die a natural death .
Shougang steel and river merge difficulty focused on the demands of the interests involved stakeholders may not unanimous. My steel mesh analyst Xu Xiangchun said Baosteel and Wuhan Iron and Steel are the central level, in a unified system, many problems easier to solve, but the river is part of the Hebei provincial government steel, Shougang is part of the Beijing municipal government, the relationship between the two governments need to be more high-level administrative means to regulate, in addition, Shougang management level and technical level is relatively high, and the volume and size of the river is even greater than the Shougang steel scale, how to absorb the merger between the two, how to balance on the management but also problems encountered in the process of merger.
Analysts agreed. Analysts believe that in the process of mergers and acquisitions in the steel enterprises, mainly involved in the distribution of benefits including government and corporate body and internal segmentation of management, "when different family, the enterprise development strategy planning for different purposes, recombinant difficulty is quite large. "
However, under the impetus of the executive power, the possibility of the establishment of the North and South Iron and Steel Group is not without. "Future policies need to look at the government level and how to move forward." Industry sources said is so.
The industry is not necessarily good
2015 World crude steel production in the top 25 rankings and statistics show that in China, Hegang ranked industry first, production reached 47.8 million tons, Baosteel Group ranked second, production was 34.9 million tons, the output of Shougang amounted to 28.6 million tons, ranking fifth, Wuhan Iron and Steel production was 25.8 million tons, ranking sixth.
If the legend of the North and South Iron and Steel Group was established, Severstal Group, newly formed production will reach 76.4 million tons, the South Iron and Steel Group to be set up production will reach 60.7 million tons, two in the world rankings will be ranked second and first, respectively, three.
After the combination of both, to enhance the degree of concentration in the steel industry no doubt. "By 2015, China ranked the top five industry concentration is about 22% of the top ten iron and steel enterprises crude steel production totaled 275 million tons, industry concentration of 34.2%." Xuxiang Chun said that if the two steel groups the establishment of the above two sets of data respectively upgraded to around 27% and close to 40%, industry concentration is rapidly increasing. This reduces the homogenization of competition between steel enterprises, industries and enterprises to avoid duplication of investment in equipment and technology.
In this regard, analysts said, after the industrial concentration increased competition mechanism can change a current steel prices a quote form a unified pricing mechanism, the market may even see a return to some kind of a steel product prices to determine the offer price possibilities.
"In this way, also to avoid the consumption of the same industry." Analysts say Chinese enterprises to go out of the process, the low prices of steel products, price competition is fierce among domestic counterparts, but also attracted foreign anti-dumping possible, but if the formation of a unified pricing mechanism, domestic counterparts reduced competition, which will help Chinese steel enterprises to go out. However, the disadvantages of concentration after boost is increased after a single voice in the enterprise market, the steel may appear a certain level rise.
The concentration of some products will increase. Analysts believe that the degree of concentration of flat products will be the first increase, "China's current large-scale steel enterprises mainly produce flat products, while small and medium steel enterprises are mainly the production of steel and other building products." Explained analysts, and said four companies currently advantage products are plates, after increase their voice in a single product, steel prices can be achieved to market ability, and timely adjust production capacity and production rhythm based on market conditions, in favor of the current steel prices, "turning around."
To effective capacity hard
"No matter how difficult, from the national level, the merger and reorganization of China's steel industry is a way to produce energy." The industry sources said that, at present, most of China's excess capacity in the industry, through mergers and acquisitions were asked to adjust industrial structure, bigger and stronger China's relevant industries.
But the possibility of such measures in the steel industry, the successful implementation is unlikely. Analysts believe that the current China's steel industry industrial restructuring for the implementation level has not been very clear idea of whether Baosteel and Wuhan Iron and Steel restructuring, or rumors now established two Iron and Steel Group, are the countries in the steel sector reform be practical operation level pilot countries want to explore the way through mergers and acquisitions, the formation of China's steel industry sample of SOE reform, to be successful pilot then be promoted.
Recently, Deputy Minister of Industry and Information Technology at the State Council Information Office press conference Feng said, according to preliminary statistics, the first half of this year, the volume of China's steel production capacity to reach 13 million tons, only about 30% of this year's objectives and tasks.
In fact, in the previous reform, China has been by way of mergers and acquisitions in the round of restructuring, analysts said: "From the actual performance, in addition to integrated river steel province, several steel companies relative success, other inter-regional fundamental restructuring have not been successful. "
As a central level, in the policy process in response to the State to production capacity, which generally perform relatively in place, contrary to the capacity to promote slow mainly accounted for half of all private enterprises and some zombies enterprise, the situation is this part of the business by the executive power to the possibility of settlement is not large.
A research report Renmin University of China showed zombie enterprises accounted for the steel industry reached 51.4%, the highest proportion of all the research industry.
"The possibility of relying on mergers and acquisitions for large-scale transfer of production capacity is not large." Xu Xiangchun also believes that the recent ten years, most of the large steel companies were technical upgrading, companies and products on the device is also very advanced, these companies do not belong to the backward production capacity, through mergers and acquisitions, will direct this production shut down is not realistic and can involve large-scale cut-off device, origin finishing, resettlement staff, very difficult.
Another idea is to continue to eliminate backward through mergers and acquisitions of small and medium steel enterprises. Steel assets belonging to heavy industry, analysts believe that both the large-scale cut-off energy mergers and acquisitions of SMEs still need strong financial strength, but the moment the steel industry has not yet fully warmed up, the enterprise's own financial strength is relatively limited, short-term to look, it is difficult to achieve the possibility of further consolidation.