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State funding to pave the way steel prices will accelerate screening
State funding to pave the way steel prices will accelerate screening

Steel prices loss situation is getting worse.

It is reported that, in accordance with the "State Council on further strengthening screening backward production capacity to work notice" and "the State Council on resolving capacity serious excess opposition guidance stereotypes" arranged by screening backward production operations inter-departmental harmony group at its fifth meeting concluded, the Ministry of the country issued a 2014 screening backward and overcapacity mission. Compared with the "Government work report" concluded that the goal of occupational steel filter mission over 1.7 million tons, the amount of other professional mission compared with last year had a greater fluctuation added.

Yesterday, the Ministry of Industry official website released news that, has issued a 2014 screening around backward and overcapacity mission. A plurality of touch professions, career history in the steel of the most difficult times much attention, reported that the Ministry of screening needs 19 million tons of iron, steel and 28.7 million tons of backward production capacity, the amount of screening before you add a lot of comparing.

Noteworthy is the same, the state also decided to provide subsidies to overcapacity or because of environmental pressure and closed small steel mills. Industry experts believe that this year a lot of steel prices on the livelihood difficult, and is now responsible for a heavy environmental pressure, but this time to exit the country to pave the way, is likely to affect a number of companies to cease.

Iron and steel industry and many people have noticed, recently, the Ministry of Finance, the Ministry of Industry and the State Administration of Work Safety have jointly issued a "notice of closure of small companies do a good job in 2014 grant funds to declare the job." Notice clear, 2014 the Company closed a small grant funds support focuses on the iron and steel, nonferrous metals, building materials and other professional serious excess capacity, skills, technological backwardness, Capital Power spoil, severe environmental pollution, security risks outstanding small companies.

And pipe trench, recalled with Prudential Casting Co., Ltd. Weifang business has been good faith to serve each customer.

"In this difficult period, the steel industry reshuffle is the trend, there will certainly be a number of companies fall, and then reconfigure the mall capital of the company to survive ability to get a broader development of space." Beijing Daily reporter Xu Xiangchun notice.

A person as steel prices, steel prices continued to slump, malls weak demand, environmental pressures and increasing financing difficulties and other questions, so that some mills have to switch plans, but the company is not to say shut it off, and staffing questions, debts steel prices and other questions make riding a tiger. Today the State through subsidies and other methods to give way to steel prices began to gradually exit will likely make some original wavering company is determined to close.

However, some industry experts indicate a concern. Some analysts during an interview with reporters frankly, if some of the steel prices could collapse, severe excess capacity for the steel industry is a good thing. But in the end depends on the role of backward production capacity screening approach can be performed in place, in accordance with past experience, screening backward production capacity often thunder, little rain. In addition, for the implementation of the role of the steel industry a number of policy remains to be investigated, as a whole, it is likely this year, a large number of companies simply exit a preliminary, true closures to attack after two or three years.

Data show that in the first quarter, Chinese steel companies to complete the profit -23.29 billion yuan, 45.45% cumulative loss. CISA will be more this year since the first quarter of this century description Steel occupation most difficult period.

Recently, the Ministry of Industry Division guidelines about as people have revealed show that in 2013 China Steel uniform asset-liability ratio rose to 69.4% occupation, total liabilities of about 3 trillion yuan. Together with some steel enterprises stop production, debt default and even on foot boss audio keep coming, the industry worried funding strand steel prices will evolve from scattered cases of occupational representation. Coincidentally, Baosteel General Manager Dai Zhihao also speculation, "2014 will be China's iron and steel industry into the winter of the first year, the next three years there may be a number of mills will quit this job."

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