Ernst & Young recently released a report, the world’s 30 largest steel companies total debt reached a record $ 150 billion, which further suggests that only with more thorough reorganization of the industry, government support for the industry, it may be effective.

Ernst & Young said in a report, the iron and steel enterprises to seize market share and massive debt, especially in China’s steel industry to increase production capacity of approximately one billion tons since 2000, so that global excess production capacity reached 700 million tons. China’s total iron and steel industry debt is estimated at $ 500 billion, compared to the world’s 30 largest steel debt business is much smaller. “Many steel companies in trouble, and some teetering on the brink of bankruptcy,” Ernst & Young said, “only if the steel industry has a viable business model, the Government’s efforts in order to work.”

ThyssenKrupp is the world’s 16th largest steel company, has announced the sale of real estate, and started talks with Tata Steel merger. As of the end of June this year, ThyssenKrupp leverage ratio of 175%, 124% over the same period last year; the debt was 4.77 billion euros, a year earlier to 4.39 billion euros. The company plans to the end of September this year, will leverage ratio fell below 150%.

The largest global steel companies Arcelor Mittal company offering financing of $ 3 billion to resolve its debt problems. ArcelorMittal also in April this year to sell $ 1 billion worth of auto parts manufacturers in Spain Gestamp Company (Gestamp) shares. At the end of the first half of this year, ArcelorMittal net debt of $ 12.7 billion, but the company forecast 2016 cash flow will be positive. (World Metal Bulletin)