Steel industry reshuffle is inevitable 10 times earnings growth is purely

Recently, according to a report from the cisa steel industry profits this year than last year more than 10 times more likely to forecast 2014 iron and steel industry will reach 21 billion yuan, profit for the 15 last year. 800 million yuan of about 12 times. To this, China metallurgical group co. , LTD. , vice general manager of xiang-chun xu said in an interview with 'securities journal' reporter, this year's profits is 10 times more than last year, had a lot to do with a low base of profits last year. By sales, for such a big iron and steel industry industry, increase 10 times is to iron and steel enterprises in China and no substantive change. Grow 10 times is tap cisa, according to a report on the cisa financial statistics of the national 86 key statistical units, in September of this year's profit levels continue to improve, when monthly profit of 3. 3 billion yuan, sales income margin 1. 07%, the highest in recent years, higher over the past two years. Liuzhou iron &steel group co. are presented. the shares, for example, in the first three quarters of this year the company net profit loss of 257. 240000 yuan, 1 loss compared to the same period last year. 7. 7 billion yuan, reduced losses. Company said that during the reporting period, the company in response to the severe market conditions, a low cost strategy, tap potential, reduce consumption, and through eating low grade ore, adjusting the ratio of consumption, reduce the comprehensive cost. At the same time, in the first three quarters of this year, the national 86 key large and medium-sized iron and steel enterprise profit of 11. 3 billion yuan, and the data in the same period of last year's loss of 6 billion yuan. It is obvious that overall performance start & other iron and steel enterprise One good thing came out & throughout; 。 Thus, cisa also & other; Ambitious & throughout; , steel industry profits this year or last year, more than 10 times. However, 10 times higher than the growth in xiang-chun xu's opinion, not worth mentioning. “ Assume that profit is 2 billion yuan last year, even 10 times this year is 20 billion yuan. ” He said. To this, the metallurgical industry planning institute director li xinchuang also take the same view. “ Last year, most of the loss of iron and steel enterprise, corporate profits increased this year is also based on last year's losses, the impact on the iron and steel enterprises itself is not very big. By holding down the price this disorderly competition between businesses, causing serious business losses. Mining profits, and other aspects from investment benefit, performance is not better. If the steel production can't be controlled effectively, the benefit of the iron and steel enterprises is difficult to improve. ” Li xinchuang told the securities daily. Xiang-chun xu added that, although the average price of steel this year than last year by 9. 6%, steel prices is the lowest in five years, most companies also have achieved good results, but the Chinese steel industry is still in a more dangerous situation, the increase of the profit of the status of the industry is not much change. Steel industry reshuffle is inevitable & other; China's steel demand is becoming saturated, serious excess capacity, industry will face reshuffle. ” There will always be the beneficiaries of the xiang-chun xu said, shuffling process and exit. So, who will benefit? Who would & other; Were & throughout; The fate of the exit? Li xinchuang argues that competitive enterprises will certainly benefit. “ So-called out mainly contains two aspects of reasons, first of all, enterprises are in the environmental protection law. Until now, the requirements for the development of the enterprise is not simply the pursuit of GDP this number, but pay more attention to the development of the ecological environment, environmental worst part enterprises must be kicked out. Second, if the enterprise the management situation is not ideal, will also be difficult to avoid the fate of the exit. In a word, environmental protection and the market competition will be decided is the decisive factor of whether in iron and steel enterprises. ” In addition, when steel can recover, also has been the market. Review of China's steel industry in 2012, the enterprise in deep red, industry in the period of extremely difficult. In 2013, can saying is a steel & other; Recovery years & throughout; 吗? “ Far from recovery. ” Xiang-chun xu said. So, spring steel industry still need how long to see? To this, li xinchuang, said recovery condition is the premise of the market to maintain a good level, enterprises also should pay attention to control the production at the same time, can't blind production. Eliminate some backward enterprises, backward production capacity, creating better space for good corporate, orderly development of the industry. On this basis, China's steel industry can be improved, gradually toward recovery. Li xinchuang prediction, steel industry needs to be a long time to recover, at least five years.