Wuhan Steel shares since last year decimated, to become the domestic steel industry production capacity, improve efficiency in microcosm. June 16 afternoon, the Wuhan Steel shares held annual shareholders’ meeting, in answer to a question raised by investors, the company chairman Ma Guoqiang said that the steel industry since last year have shown a bottoming trend, mainly iron and steel enterprises will gradually achieve breakeven or profit.
By downward economic pressure and excess industry capacity severely affected, in recent years, most domestic steel companies have suffered different degrees of loss, Wuhan Steel shares in 2015 amounted to a loss of 7.5 billion yuan. In response, Ma Guoqiang believes that this is largely due to a substantial decline in steel prices last year. According to reports, the end of 2015 compared to the beginning of the hot-rolled steel, cold rolled steel, galvanized unit price per tonne decreased by about 1,100 yuan, 1300 yuan and 1400 yuan, which led directly to Wuhan Steel shares reduced profit nearly billion. However, the price of iron ore and other upstream materials is correspondingly reduced, making the company’s raw material costs, offset some of the losses.
So, when the steel industry to pick up, the recovery? In fact, in the first quarter of this year, steel prices, a direct impact on some of the steel companies in the first quarter profit; since May, steel prices and the emergence of a sharp rise, the industry seems to be showing signs of improvement. Wuhan Steel shares Directors, following the new general manager of Zou believes that this year short-term rebound in the steel market, does not mean that the industry has fully recovered.
“The current industry-wide capacity utilization rate of less than 70%, it is still a serious excess capacity in the industry.” Following the new Zou said the sound development of the industry also needs to continue to promote the production, mergers and acquisitions, this process is still a long time, “from 6 start month, steel prices have declined, the formation of the third quarter of this year to support price stability more difficult. ”
Ma Guoqiang the development trend of the industry is relatively optimistic that the steel industry when the worst is past. “This year rehabilitation rise in steel prices is an objective, but because of excessive repair, now have the callback.” Ma Guoqiang believes that steel prices will gradually return to normal and stabilized, the main iron and steel enterprises will gradually achieve profit or losses, “National moving from multiple angles safety supervision, environmental protection, quality supervision to purify the steel industry, the previous state of disorderly competition will be improved, which is large, compliance steel companies is good. ”
Shareholders’ Meeting on the same day, investors asked WISCO future development plans. Ma Guoqiang responded that Wuhan Steel shares no planned sideline, the current will continue to iron and steel industry, seize the Yangtze River economic belt construction opportunities policy, the use of Language Wuhan geographical advantages, radiation throughout the central market area.
“The company currently no plans of mergers and acquisitions, mergers peers nor better chance.” Ma Guoqiang said skills, reduce costs, improve efficiency will be the Wuhan Steel shares management’s focus, “benchmarking world-class enterprises, Wuhan Iron and Steel production equipment is not bad, adequate technical reserves, but the biggest short board is the product quality is not stable enough, this is the Wuhan Iron and Steel in the future will focus on breakthroughs in place. ”
In addition, Wuhan Steel shares will continue to manage systems and human resources optimization, the company will reduce layers of management, and ultimately the three-level management model. 2015, Wuhan Steel shares attrition more than 6,000 the total number of companies are also serving nearly 30,000 from the previous to the current 2.3 million people. According to Ma Guoqiang introduced, if Wuhan Steel shares to maintain the current production, according to the standard per capita steel production 1,000 tons / year, the company also is expected to more than 6,000 people downsizing.