Looking at the steel market from the crisis of the downstream shipbuilding industry

When the domestic shipbuilding industry faced difficulties such as high delivery volume, high number of withdrawal orders, and falling ship prices; when the central enterprise CEO wrote a letter of pleading for the State Council to rescue the shipping delisting crisis, when the listed shipbuilding company faced a huge loss in the first half of the year At that time, did it have the feeling of “wearing tears and tears in the steel industry”? The data showed that from January to July, the shipping value of shipbuilding enterprises above designated size was 163.4 billion yuan, down 10.2% year-on-year. Because the added value of export orders is much higher than domestic orders, it is an important profit support point for the shipbuilding industry. The continuous decline of new orders has caused a big impact on the shipyard's profitability. Since the beginning of this year, the news that Chinese shipbuilding enterprises have closed down or closed down has been heard. The shipbuilding enterprises in Jiangsu, Zhejiang, Fujian, Shandong and other major shipbuilding provinces have been caught in the predicament of underemployment or work stoppage. The insiders analyzed the reasons, saying that the shipbuilding industry has fallen to such a level, and it is entirely brewing. From the first half of 2010, China's ship completion volume reached 8 million tons, and it became the world's number one in the first half of the year. This shows that China's shipbuilding industry is ushered in a glorious period. Therefore, blind investment development has blinded everyone's eyes, the market is saturated, the production capacity is over, and there is no technical support. This has created the bitter fruit of today's crisis. It is understood that in order to cope with this crisis, the shipbuilding industry has gradually turned to the downstream of the industrial chain such as repair and modification. The shipbuilding enterprises with sufficient technical strength have gradually shifted their strategic layout to the marine engineering equipment manufacturing industry and sought a new way out. Looking at the steel industry, it seems that this is also the case. This year's pattern is already overwhelmed. It is closely related to the internal reasons. This is closely related to the rise and fall of demand in the downstream industry. The steel industry has been suffering from the lack of downstream demand and cannot boost the market. It is necessary to know the amount of steel used in this crisis. The shipbuilding industry, which has huge demand, has also reached the end of its decline. The steel products required by the shipbuilding industry mainly include plates, profiles and pipes, of which mainly plates. All shipbuilding panels are to be approved by the classification society. The difference in the type of ship and the size of the tonnage vary greatly in the amount of steel consumed. According to the ship's design and usage statistics, it is necessary to manufacture 32,000 tons of steel for a 12,000 dwt freighter, 5300 tons for a 25,000 dwt bulk carrier, and 11,000 tons for a 66,000 dwt bulk carrier. The construction of a 100,000 DWT tanker requires 16,000 tons of steel, the 200,000 DWT tanker requires 24,000 tons of steel, and the 300,000 DWT tanker requires 40,000 tons of steel. It can be seen that the decline of the shipbuilding industry has had a big impact on the downstream demand of the steel market. For the steel industry. At the end of 2008, the 4 trillion investment plan created the sight of the old steel industry, which allowed more capital to be invested in the steel industry. This led to a serious excess of production capacity. Nowadays, downstream demand is weak, the market is almost close, and the steel industry is beautiful. Never return. At present, the loss of the steel industry is a foregone conclusion, and we should also look for new and innovative profit points. A veteran “old steel man” Xu Kuangdi once said that steel companies need to change the current industrial status and business operations. It is worthwhile to work hard in these four aspects: first, saving energy and reducing production costs; secondly, reducing Restructuring, gradually consuming excess capacity; third, extending up and down, building an industrial chain; Fourth, discovering new markets and actively expanding operational space. The Ministry of Industry and Information Technology of China also issued a document on September 3, stating that it will phase out the general steel enterprises with an annual output of crude steel of less than 1 million tons. Through the supervision of policies, we will eliminate backward production capacity and alleviate China's severe excess steel production capacity. Any industry can only achieve life and death if it has experienced life and death, and survival of the fittest is the last word of development. The same applies to the steel industry. The steel industry can only go through the predicament and turn the crisis into safety if it first adopts its own reforms and conforms to the laws of the market economy.

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