Anxiety Treatment Center: a “Chinese Style” Hidden Behind the Iron and Steel Restructuring of Anxiety – Steel, Restr

Following the Shandong Steel Rizhao Iron and Steel Company announced the successful restructuring, the restructuring of the steel industry in Jiangxi was also good news?? Science and steel stake to Xinyu Iron and Steel will be allocated free of charge, Nanchang Iron 57.97% of the publicly listed state-owned shares will be transferred.

A time, followed the steel dragon, iron and steel enterprises in China Block, a new day everyday.

World hee hee, are all benefits to; world Rangrang are all for money. Big big way around the back of the steel industry, we see that the restructuring of government at all levels to act as the vanguard of the impatient, to increase the market voice of the day and night bustle.

A “Chinese-style reorganization” steel “Shuffle war” as if springing up all over China?? “Restructuring the province,” “cross-re,” “strong as the King,” “weak for survival” of the reorganization of the sample unfolding. Pushing the local government, the “restructuring of the province” means rapid progress. Reorganization in a variety of ways, “the province restructuring” of the most significant administrative figure. Hill is a typical case of restructuring of steel, if not the local government’s “strong support”, mountain of steel on steel restructuring would be a dream.

The efficiency of iron and steel restructuring is astounding, the industry have predicted that such a speed, such strength, the provinces strong carrier made of steel, iron and steel enterprises in China will rapidly increase the scale of integration of domestic resources, will enhance the international market discourse right. First sound of, it is joy again and again, carefully consider, worry is rain.

“Chinese” re-make the steel industry in the administrative intervention plan Economy What will be lost in what context? Not market-oriented integration, while the sub-group among enterprises is inevitable drawbacks, and finally not only difficult to create synergies, business operating costs actually increased.

This may just worries lie, get to the bottom of this restructuring mode, advance the potential of the steel industry’s long and short term post-reorganization is not unfounded.

Today, power in the provinces concerned have made, some local steel enterprises have small plot together large accumulation of small, one by one “world class” scale steel mill where they stand.

Currently, five former Japanese steel output in the steel enterprises accounted for 75% in Japan, the European Union 6 steel enterprises steel production accounted for 74% of the entire European Union. But the problem is that China, as steel production superpower, can not and should catch up with world standards as his goal. This is also the central point of the steel re-runs counter to reality.

Revitalization of central planning in the steel industry clearly play a Baosteel, saddle of this, large groups such as Wuhan Steel’s role in promoting the country in 2011 required the formation of Baosteel Group, the saddle of the Group, Wuhan Steel Group, and more than 50 million tons, with international competitiveness of the large iron and steel group. But after the reorganization of the provinces as the center of steel, will be planted to further integration of the domestic industry risks. Steel companies around the enclosure until the time of completion of the provinces lined steel companies, cross-regional restructuring is more difficult than they are now on several times. Integrated into dozens of million tons of levels of “Little Steel” is easy, but we have to integrate out of Japan, the EU steel industry, as concentration, is difficult.

In addition, the Chinese have set off around the restructuring of steel tide, the period is accompanied by the expansion of business re-investment impulse. Reorganization of an enterprise, often accompanied by a large number of follow-up investment. After the reorganization of the enterprise, known as pushing the “high value-added product line,” but actually intended to force industry to avoid government regulation, for fear of being eliminated as a backward production capacity. The problem is, with the major companies in the investment of production, China’s steel industry has entered an era of structural surplus. Iron and steel industry planning itself becomes a catalyst for investment in the steel industry. Moreover, as the provincial steel industry restructuring, steel trade protectionism quietly breeding. Restricting the provinces, for the iron and steel enterprises province Sell Established advantages of indirect shielding steel companies from other parts of sales. I remember, in May this year the occasion of Wuhan Iron and Steel sales difficult, Vice Governor of Hubei Province, led in person, more than 300 organizations in the province to the Wuhan Iron and Steel Company to supply docking, on-site purchase agreement entered into 930,000 tons of steel and 5.04 million tons Agreement Order .

A “Chinese-style” behind the iron and steel re-Feast, the number of hidden worry, we will have time to do the last Commentary.

Rong-Liang

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