2014 is definitely a year worth footnoting for the steel industry, and many industry insiders believed that China's steel industry would start to focus on corporate bankruptcies from this year. And that's exactly what happened.
Since March 18 this year, once ranked as one of the four major private enterprises in the steel enterprises to stop production, opened this year's steel enterprises bankruptcy door prelude, and then successively several steel enterprises to join the "bankruptcy door" echelon, and these steel enterprises were once one of the leading enterprises in the local industry.
Capital chain rupture, become the most fatal wound of these steel enterprises.
The most representative of a steel enterprise in Shanxi, which reflects the capital chain problem is estimated to be the most comprehensive, such as delinquent workers' wages, delinquent project payments, delinquent suppliers of materials, delinquent bank loans, and so on, almost every aspect of the production of capital problems.
After this, on June 30, a steel enterprise located in Xiaoxinganling was revealed to be in danger of bankruptcy because of unpaid wages to its employees, and nearly 1,000 employees clashed with plant managers that day.
Bankruptcy door continued to the southwest. July 3, located in the southwest of a steel company held a cadres conference, announced the implementation of the company's "judicial reorganization", and public information shows that the so-called "judicial reorganization" is also in order to solve the problem of capital.
According to statistics from the China Steel Association, the total gearing ratio of China's iron and steel enterprises is close to 70%, and many of the key steel enterprises have a gearing ratio of more than 90%. Miao Changxing, deputy director of the Policy Department of the Ministry of Industry and Information Technology, said the total liabilities of China's iron and steel industry amounted to about 3 trillion yuan.
Analysts said that since 2002, China's steel production capacity, production has been climbing high, in 2013 China's crude steel production capacity of more than 1 billion tons, the actual demand is less than 800 million tons, while this year China's crude steel production capacity is expected to reach 1.07 billion tons. In the past five years, China's iron and steel industry capacity utilization rate has been fluctuating below 80%, with serious overcapacity.
A large amount of excess capacity leads to the steel industry profits will be long-term low.
Currently, China has been in economic transition, the growth of steel demand has slowed down, while the world economy is in a slow recovery, so both from the domestic market and the international market are supply than demand.
At the same time, due to the manufacturing capacity of steel equipment, strong construction force, and investment costs have been significantly reduced, the steel industry has changed from "difficult to enter and exit" industry to "easy to enter and exit" industry, which makes the rapid increase in steel production The ability to rapidly increase steel production has been greatly enhanced, even if the market demand growth in the first signs, but also will be quickly formed by the capacity and new production capacity to fill. And such a difficult period is feared to last 5 to 10 years.