Steel enterprise profit rate is not as good as private enterprises

Recently, it was learned from an authoritative person that in the current situation that the steel industry is in an overall operational dilemma, although the state-owned steel mills have higher sales revenue than the private steel mills, the profit income is not satisfactory, and the profit margin of most state-owned steel mills. Not as good as private steel mills. According to a statistical material of China Steel Association, from the profit level of steel enterprises of over 5 million tons, the profit rate of January-October 2011 fell to 2.99%, and the profit margin of most state-owned steel enterprises within the statistical range was lower than this level. And the rate of penetration of most private enterprises is higher than this level. There are indications that private steel mills have stronger “impact resistance” compared to state-owned steel mills in the steel industry, which is generally faced with sluggish downstream demand, falling steel prices, and high cost of ore. Xu Xiangchun, director of steel consulting, said that most private steel mills in China mainly concentrate on the production of long products and building materials, while state-owned steel mills have invested in sheet metal projects in recent years. Objectively speaking, steel demand in recent years has mainly focused on building materials. In terms of materials, this in itself gives private steel mills an excellent market opportunity. A person in charge of a steel company in Tangshan said that although there are many objective factors, it must be pointed out that many private steel mills are indeed better than some state-owned steel mills in managing decisions and reducing production costs. There are indications that the steel industry has entered a very serious moment, not only the industry profits have fallen to freezing point, but the loss of the steel industry is also expanding. "In 2012, the steel industry will still face a new situation of overcapacity and weakening market demand." Xu Xiangchun told reporters that once the domestic market supply exceeds demand next year, the market price will fall across the board, and the business difficulties will deteriorate. Private enterprises The competitive advantage may be more prominent.

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