From September 9 to 16, the price of the main ship trading market in the country fell weakly. Specifically, on September 16, the average price of 10 mm shipbuilding steel plate was 4381 RMB / ton, down 2 RMB / ton from September 9; the average price of 20 mm thickness Grade AH36 ship steel plate was 4325 RMB / ton, compared with September 9 It fell by 7 RMB / ton.
According to the statistics of “My Steel Network”, on September 12, the domestic spot steel price composite index closed at 140.4 points, up 0.5% in the week. Recently, steel prices have fluctuated upwards mainly due to two points: First, on the news front, the central bank lowered the favorable conditions and China and the United States exchanged goodwill for the new round of trade negotiations, which boosted market confidence. Second, terminal demand. The toughness and dynamics still exist, especially the peak season effect gradually appears, the downstream construction is accelerated, and some steel enterprises are superimposed to limit the production and insured prices, resulting in an accelerated decline in steel social inventories. However, the growth rate of real estate development investment has declined, and the downward pressure on the auto industry is still large, which will have an impact on the direction of the steel market.
After the two-year advancement of the “de-capacity” ceiling target, the next breakthrough in the structural reform of the steel supply side is where? Recently, the person in charge of the China Iron and Steel Industry Association said that the structural dispersion and low industrial concentration are key issues that restrict the healthy development of the steel industry.
The "Twelfth Five-Year Development Plan for the Iron and Steel Industry" clearly states that in 2015, the proportion of the top 10 steel enterprise group steel production in the country to the national total (CR10) should be increased to about 60%. However, the CR10 of the steel industry has declined from 48.6% in 2010 to 34.2% in 2015. In 2016, the establishment of China Baowu Iron and Steel Group brought CR10 back to 35.9%; in 2018, CR10 dropped to 35.3%.
The steel industry must concentrate on another major battle to increase industrial concentration through mergers and acquisitions, and achieve new breakthroughs in supply-side structural reforms. In combination with the actual industry and relevant policy requirements, the steel industry promotes mergers and acquisitions in three main directions: one is the combination of leading enterprises, forming a giant steel group of 80 million tons; the second is regional integration, integrating steel enterprises in the region, and upgrading enterprises in the region. The influence will play a synergistic effect; the third is to complement each other's strengths, promote the alliance between enterprises with advantages, and realize the sharing of resources and technology and complementary advantages. (source from chinashipnews.com.cn)
