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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.

Billet

Partially finished steel prices yesterday, with varying degrees of pull up futures performance is more popular, and today the overall turnover of the steel market is not satisfactory, product shipments light, due to the transport turnover hardly optimistic restricted stock, and futures plunge on steel City is even worse. Steel City again face, short-term Have billet turning machine?

From the current status of the Steel City, the first time the director discontinued tune rolled billet, billet demand is not optimistic at this stage to take the goods, mostly downstream slab transfer rolled billet plant and traders short replenishment, and then because the road is restricted billet transportation affected a large extent, so the market can circulate relatively limited resources, some manufacturers backlog of inventory stock, the latter part of the market there is a certain negative impact. Secondly, the intensity of blast furnace stew expected to shrink from the previous month. Originally I thought that after all the stew blast furnace, the market will be a “crazy” speculation, but by today I Tangshan steel nets actual situation simmered stove understand, discover stew blast furnace and the intensity is not expected, according to statistics now Tangshan steel prices blast maintenance seat number (including discontinued) 69 maintenance volume 50280m3, the operating rate of 66.27% compared with 23.43% drop on the 12th. Speculative factors in the market can be greatly reduced, coupled with lower futures has fallen sharply, the business mentality to reproduce downturn.

According to Caixin, it has been suspended for more than four months of SGIS Songshan Co. resumption today (June 13). The company previously announced proposed a major reorganization of assets have been terminated, and promised immediate effect no longer planning a major reorganization of assets within six months.
* ST Shaogang originally intended to sell all the steel business assets, the actual controller for the company’s buyers Baosteel Group Co., Ltd., at the same time, * ST Shaoguan Iron & Steel Baosteel Group will acquire the business assets of financial subsidiaries issued shares by way of purchase of assets, purpose is to release a serious loss of primary iron and steel industry, and replaced with financial assets business, to keep the listed company “shell.”
* ST Shaogang but ultimately abandoned the restructuring. Notice that its main reason is two-fold: on the one hand, to be placed assets of Baosteel Group’s financial business assets, and require a complex approval procedures, involves not only the state-owned assets supervision and administration, finance and securities industry authorities, further information disclosure of listed companies involved in convergence, the parties are unable to complete the restructuring within the expected time; on the other hand, related to divestitures and restructuring will be required to pay the cost of large-scale tax.
SGIS Guangdong Province is the largest steel producer, leading products for the sheet, wire rod and three series, the steel output of about 600 tons. The company formerly Shaoguan Steel Group Holdings, in December 2011, Shaoguan Iron & Steel Group by the SASAC approval, incorporated into Baosteel Group, Shaoguan Iron & Steel Group in September the following year changed its name to Guangdong Shaoguan Iron & Steel Co., Baosteel Group. Baosteel Group became SGIS actual controller.
Then why take the “free transfer” approach, mainly due SGIS years of operation is not ideal. From the net profit, the loss in 2008 of $ 1.6 billion in 2009 and 2010. Although there is no loss, but net profit was only 093 million yuan and 021 million yuan, followed by two years in 2011 and 2012 and then another loss of 1.138 billion yuan and 19.5 billion yuan.
According to the provisions of the Shenzhen Stock Exchange in 2013 SGIS had worn a “ST” hat. After the company was officially transferred to Baosteel Group, 2013 was only 100 million yuan profit obtained in 2014 and 2015, its net profit loss of 1.388 billion yuan and 2.596 billion yuan, of which 2015 losses record company history. SGIS referred thereby “Phi Star hats”, become “* ST Shaogang.”
April 30 this year, * ST Shaogang a quarterly report published in 2016, a loss of 230 million yuan. SGIS original restructuring plan is to be a serious loss of the main steel business sold to Baosteel Group, Baosteel Group, and then based on their assessment completely turn off the part of the production capacity, but that abortion restructuring plan, SGIS future woeful.
February 4, the State Council issued “on the steel industry to resolve the overcapacity in the development of the views of a turnaround,” clearly with 5 years Yajian crude steel production capacity of 100 million -1.5 million tons, overall responsibility by the SASAC and the provincial government Yajian implementation. Currently the provinces have reported to the task Yajian NDRC and the Ministry of Industry, capacity Yajian work will be fully carried out.
SGIS severe losses, on the one hand will face pressure to cut energy pressure, on the other hand, if 2016 is still a loss, will be forced to withdraw from the market.
related news
* ST asset restructuring Shaogang halt Baosteel asset securitization how to proceed?
An analyst Northeast Securities to CBN reporter said SGIS consecutive years of losses, there is need to protect the shell, the injection of assets to be losses. Baosteel Group has financial assets “Warburg system”, by the loss of high-quality financial assets into the listed subsidiary, both security shell, while at the same realization twelve arbitrage. And for SGIS said in a statement that the main reason for the termination of the reorganization of assets into account the complexity of the related financial divestitures and reorganization proceedings, said analysts believe, has been the securitization of financial assets are strictly regulated objects. The recently passed its assets into the listed subsidiary of state-owned enterprises to enhance the Group’s asset securitization rate case of a few, in addition to asset restructuring * ST Jinrui before and between Minmetals, * ST Jinan Diesel also released yesterday evening, said progress in the suspension, Note CNPC intends to eligible financial assets.
“SGIS asset restructuring both clear asset securitization SOE reform is inevitable, but also a focus on this regulation, in fact, considered more of a state-owned how to locate the problem, each of the current state-owned enterprises have become a platform for pluralistic how to take into account the development of the back of the main business, which is the regulatory authorities to be considered, but also its asset restructuring may meet resistance reasons, “Huatai Securities chief strategist Xuehe Xiang said.
Under the “major asset restructuring of listed companies management approach” and other laws, regulations and normative documents, SGIS commitment within six months no longer planning a major reorganization of assets from the date of resumption of trading. This also means that during the year, will not be completed SGIS financial assets into Baosteel Group, Baosteel Group as a whole so as to enhance the work of asset securitization rate.
* ST Bayi Steel (hereinafter referred to as “Bayi Iron & Steel”) as a subsidiary of Baosteel Group, Paul Shell also face pressure, but also because it is a major asset restructuring suspended state. Bayi Iron & Steel latest bulletin released on June 4, the company stock since June 1, 2016 to continue the suspension is not more than one month. In the latest announcement, Bayi Iron & Steel said that “a major asset restructuring framework agreement of Xinjiang Bayi Iron & Steel Co., Ltd.” is only a preliminary intention of the parties to the restructuring framework, not a final restructuring plan. Company and the parties concerned are currently the subject matter of the restructuring plan and the assets involved in the in-depth consultations, to explore, to further improve the restructuring plan.
This is before the market analysts speculate under the relevant industrial gases business assets will be injected into the Baosteel Group Bayi Iron & Steel messages vary. The June 3 SGIS announcement had been suspended and there is no mention of issues.
By 2015, China’s steel industry overcapacity, imbalance between supply and demand, under the background of the expansion of the industry loss, Bayi Iron & Steel 2015 report, the company in 2015 from January to December achieved operating income of 10.555 billion yuan, down 48.85 percent. The company SGIS 2015 annual report, the reporting period the company achieved operating income of 11.145 billion yuan, down 42.84 percent; operating cost of 12.525 billion yuan, down 36.53%; net profit attributable to the parent company of one hundred million yuan -25.96, 2014 in the same period -13.88 million. By injecting quality assets to realize losses, it is the most realistic solution SGIS and placed in front of Bayi Iron & Steel.
CBN reporter interviewed a number of companies, including SGIS the phone has been in no one answered, Baosteel has said the inconvenience to do in response. (Sina Finance)

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According to Voice of the economy “CNR Financial Review” reported that domestic production is going abroad are anti-dumping – Nearest steelmakers life difficult. From late April to late May, a number of countries, including the European Union, Chile, United States, Vietnam, Australia, India, Colombia, Canada and Malaysia, to China’s iron and steel product anti-dumping investigations or to make anti-dumping ruling.
To this end, the Ministry of Commerce issued a document for two consecutive days expressed “strong dissatisfaction.” Ministry of Commerce, trade remedy investigations bureau, said the recent US continuously taken for steel products trade remedy measures, which is not prudent behavior, this is an unprecedented for the Chinese iron and steel products launched 337 investigations, with the obvious trade protectionism. Compared to the US, efforts in other countries does not seem so great, but many countries together for China’s steel products of sanctions, but also makes the Chinese iron and steel enterprises bloated.
With the global economic slowdown, the global steel industry showing severe overcapacity, while China’s steel exports accounted for half of the world’s total export volume. Steel price slump caused by the collapse of a large number of worldwide from Australia to plant part of the industrial center of the United Kingdom, and the United States. Many countries have accused China of being heavily subsidized steel sector to the global market a large output of steel at below the cost of production “dumping”, driving down international prices.
From the data, last year China’s steel production has more than 800 million tons, a new record. But last year China’s economic growth and fixed asset investment growth to continue down that domestic steel consumption actually fell slightly, mainly rely on exports, customs statistics show that in 2015 China’s steel exports rose nearly 20%. Now the first four months, China’s steel exports up 7.6 percent to this 36.9 million tons.
Experts said that in practice this is not the United States and Europe fishes Chinese steel products launched dual. The current global economic growth is very weak, the market demand is shrinking very powerful, China’s steel production capacity has a very large scale and industrial clustering effect. In addition, total factor cost of Chinese steel industry is very low, but the US only emphasized China was the place government support, but it does not emphasize our overall costs are much lower than they are.
In addition, China’s steel products now have a price advantage, most notably in terms of cost and scale, rather than in terms of subsidies, so this is only the US side of the story, reflecting the United States and Europe now look at someone else’s fault, but does not looking for their own reasons. China is now the world’s new manufacturing center, China’s steel production capacity is also gathering, costs are generally rising.
In addition, our production scale has reached a certain degree, our own also need to be adjusted, this year’s “Black May” broke many companies fantasy, these enterprises must speed up transformation and upgrading, at the same time, many state-owned enterprises also have to capacity. This means that we must accelerate the merger and reorganization of the industry, before that, we need to place a large number of laid-off workers, reduce surplus staff. In this process, we want to use economic policy to capacity, can not rely on administrative measures, such as improving quality standards, technical standards of products, and gradually promote resource tax, environmental tax reform

US media reported June 1, the recent US trade protection measures against imported steel products to take, although beneficial to the national steel industry, but significantly raise its domestic steel prices, affecting the supply of steel products, against the US manufacturing sector.

“Wall Street Journal” on the front page the day of the Papers say, by the United States to China, Brazil, India, Japan and other countries steel products imposed countervailing and anti-dumping tariffs, the US hot-rolled steel benchmark index rose by more than 60% this year, reaching each tonne to $ 615. US Department of Commerce recently made the decision to levy on some steel products up to about 266 percent tariffs on China will further lift domestic prices of steel products.

The article points out, not only the United States of levying such duties steel manufacturing business costs, but also affect the supply chain stability. In the first quarter, US imports of steel products fell by 29%. Although the United States steel industry production has improved, but was unable to meet domestic market demand, the US steel products average delivery time from 3.6 weeks at the beginning of this year has been extended to the current 6.2 weeks.

The article quoted a US manufacturing company said the data, the US government trade protection measures against steel products, the company increased 4 million to $ 5 million annual cost, if not changed, which is located in Oklahoma a factory They will be forced to close.

n early June before the opening of the eighth round of Sino-US strategic and economic dialogue, the Sino-US trade disputes escalating into a significant pain point. US Steel trade war against China is a comprehensive upgrade. This led to strong resentment among the Chinese side.
To curb the influx of Chinese iron and steel, the US Department of Commerce decided on the 25th announced the final ruling of anti-dumping and countervailing investigations, the corrosion-resistant steel from China
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Up to 450% of the imposed anti-dumping duties and countervailing duties to replace the rate of 256% when the preliminary ruling last December. The agency also announced on corrosion-resistant steel India, Italy, South Korea and Taiwan to impose anti-dumping duties, but the rate of China’s most important.
The Chinese Ministry of Commerce, Bureau of 26 trade remedy investigations, said,
The United States has recently been deliberately suppressed the bulk of Chinese exports to the US steel products, cold rolled and corrosion-resistant plate, ruled entirely inconsistent with the actual market situation, essentially man-made obstacles, rejection of Chinese products. Chinese government and enterprises to strong dissatisfaction with the United States of irrational behavior.
May 26, the US International Trade Commission announced its decision on Chinese exports to the US steel and alloy steel products launched 337 investigations. The Chinese Ministry of Commerce, Trade Remedy Investigation Bureau issued a document called 27,
For the United States based on unfounded allegations and application, decided to Chinese exports to the US steel and alloy steel products launched 337 investigations, the Chinese side expresses its resolute opposition and strong dissatisfaction. Recent US continuously taken for steel products trade remedy measures, which is not prudent behavior, this is an unprecedented for the Chinese iron and steel products launched 337 investigations, with the obvious trade protectionism.
Moreover, the US also announced dozens of Chinese steel companies to investigate whether the theft of trade secrets. According to Reuters, the US International Trade Commission (ITC) 26, said the complainant had US Steel (United States Steel) proposed investigation, the company’s complaint that hackers stole data production technology of a new generation of lightweight high-strength steel, so that competitors can copy China’s Baosteel quickly that the company spent 10 years developing the product. It also said that China is also a competitor to fix prices, and exports to the US product tampering origin.
ITC said in a statement, not yet make a determination of the merits of the case. According to the main US Tariff Act of Section 337, the United States Steel Corporation seeks to stop almost all imports from China’s largest iron and steel production activities in enterprises and trading companies.
The Committee of the Chinese iron and steel production enterprises and 40 sales subsidiaries as the survey, including Baosteel, Hebei Iron and Steel, Wuhan Iron and Steel, Anshan Iron and Steel and Jiangsu Shagang.
Baosteel responded that the allegations baseless, totally inconsistent with the facts, particularly with regard to allegations of misappropriation of trade secrets, Baosteel, US Steel from unwarranted speculation and subjective, it is nonsense.
With the global economic slowdown, the global steel industry presents a serious overcapacity. And China’s steel exports accounted for half of the world’s total exports last year, production reached 112 million tons. Steel price slump caused by the collapse of a large number of worldwide from Australia to plant part of the industrial center of the United Kingdom, and the United States.
Thus, China’s steel industry has become a target of public criticism. China accused the United States and Europe are heavily subsidized by the iron and steel sector to the global market a large output of steel at below the cost of production “dumping”, driving down international prices.
Between China and Europe and around the steel-related issues become increasingly acute contradictions and conflicts. In the 26th G7 summit held in Japan has just started, but did not attend because of the Chinese iron and steel issues became the focus of discussion. European Commission President Juncker said Chinese steel overcapacity affecting all countries, Europe can not “distorted market” defenseless. G7 summit communique made clear that steel overcapacity have a negative impact on the economy.
This problem has also hit China’s efforts to gain market economy status within the WTO framework. China claims that it joined the 15th anniversary of the full WTO in December this year, should not automatically granted market economy status. If China acquired the status, then this may affect the ability of the United States and other countries on China initiated anti-dumping case, because it will enable them to parity with the price can not be surrogate country.
In the middle of this month, the European Parliament to 546: overwhelmingly 28 passed a resolution refusing to recognize China’s market economy status, and refused to relax the anti-dumping ban on China, and its resolutions, the statement said the current 73 EU anti-dumping measures, the Chinese violation the 56.
Head of EU Delegation WeiShi 9 May has said China needs emergency response steel industry overcapacity and resulting market imbalances, the problems without delay, the current lack of initiatives to deal with the Chinese efforts.
Chinese Foreign Ministry subsequently responded that on May 10, steel overcapacity is a global problem, its root cause is lack of effective demand during a global recession, the solution to this problem is the fundamental way to take effective measures to make the global economy can be sustained and stable recovery.
China refused to acknowledge any wrongdoing. Ministry of Foreign Affairs also said that May 10, 2015, the EU imported a total of 32 million tons of steel, which is actually only about 1/5 from China, so the plight of the industry in Europe is now entirely to blame China is obviously illogical.
US Department of Commerce on May 17 said it would cold rolled flat steel imports from China increased to final 522% import tax. May 18, the Ministry of Finance issued a document that China will continue to implement the export tax rebates and other tax incentives, the abolition of bonded steel imports under processing trade. This means that the steel export business tax incentives although controversial, but in the future will continue to adhere to this policy.
High tax rates for the dual US and Chinese Ministry of Commerce, Bureau of 26 trade remedy investigations, said: “The Chinese side will take all necessary measures to fight for fair treatment, safeguard the interests of enterprises,” but this is described in detail.
However, the Chinese government is trying to solve the steel industry overcapacity problem. The central government said it will decrease from 100 million to 150 million tons of annual capacity. Hebei Province, China’s largest iron and steel plans to Yajian 17.26 million tons of iron, 14.22 million tons of steel production capacity. Last week, the State Department arrange 100 billion yuan of special funds to support resolve the steel and coal industry overcapacity.
China Iron and Steel Association on Tuesday released “2016 China Steel Industry Development Report” said that China does not encourage large exports of steel products, China’s steel industry is willing to cooperation and win-win way to resolve trade friction, firmly oppose trade protectionism, against the will of steel politicizing trade issues