At present, the situation of oversupply in the steel market is difficult to change in the short term. Since the first quarter of 2009, as the global economic situation has stabilized and rebounded, crude steel production in other major steel producing countries outside China has also recovered rapidly. It is estimated that steel prices have begun to fall. At the same time, countries have increased the anti-dumping efforts of imported steel products, and China's steel exports are difficult. Overcapacity, sharp decline in exports, and imbalance between supply and demand have caused the deterioration of the operating conditions of China's steel industry. In the second half of 2009, the continuous growth of domestic steel production capacity and the rapid recovery of global steel production increased the demand for upstream raw materials and boosted the overall increase in prices of iron ore, coal, coke, water, electricity and transportation.
The Council of China Iron and Steel Industry Association held on February 5, 2010 announced a set of data: In 2009, the top five steel giants in China's steel industry (Hebei Iron and Steel, Baosteel, Wuhan Iron and Steel, Anben, and the State) bundled steel production. 165 million tons, accounting for only 29.1% of the national steel production in the same period. The concentration of the top 5 of the steel industry has only increased by 0.5 percentage points, and the concentration of the top 10 has only increased by 0.9 percentage points. It is “45% by 2011” proposed by the State Council’s “Steel Industry Adjustment and Revitalization Regulations”. The goal is still a far cry. In 2009, the domestic steel industry's profit level was about 10 US dollars / ton, which is far from the profit of tens of US dollars / ton in the steel industry in previous years. The domestic steel market has already exceeded supply. Low concentration and overcapacity have become major obstacles to the rebound in steel prices and the improvement of industry profitability.
In 2009, the steel output of China Steel Association employees increased by 11.27% year-on-year, but the sales revenue of products decreased by 10.14% year-on-year, and the profit decreased by 33.64%.
In 2009, the steel output of key steel enterprises increased by 11.27% year-on-year, and the annual crude steel output reached 568 million tons, which is more than 100 million tons predicted by the “Steel Industry Adjustment and Revitalization Plan”. The growth rate of crude steel output of small and medium-sized enterprises exceeded the growth rate of key steel enterprises by more than one time, reaching 24.73%. However, the output of legal steel enterprises that have been officially approved by various levels of government is only about 300 million tons, and about 300 million tons are not approved.
Globally, the output of four steel mills in the United States accounts for 61% of the country, and the output of four steel mills in Japan accounts for 75% of the country. The top five steel companies in China accounted for less than 30% of the country in 2009. .
