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Foreign media said, is known as the "m" of industry of steel prices to return not equal to half of the water price.Additional factories to bring the excess supply of Chinese iron and steel company has lasted for several years, the dumping cheap products in overseas markets such as South Korea, south Korean steel product prices are falling.The most basic of steel products: cold rolled and the most representative of hot rolled electrical steel material products.South Korean hot rolled product price per ton in 2008 to 990000 won (about 5445 yuan), and shall prevail in December of this year, half the price per ton, fell to 490000 won (about 2695 yuan).
Breakdowns of the world iron and steel enterprises in China
According to South Korea's chosun ilbo newspaper website reported on December 8, cause this phenomenon of the "principal" is China's largest.China is the world's largest steel consumer and producer.Due to excessive construction plant, however, makes the surge in steel production and supply, on the contrary, in 2008-2009 after the global financial crisis, the economy into a low growth for a long time, cause the steel consumption, under direct attack.
According to the report, in fact, after the financial crisis, China's domestic steel consumption appear negative growth for the first time last year.When the stagnation of consumption trend became clear, China's iron and steel company is through exports to get rid of the rest of the production.Until July this year, China's steel exports and the previous year increased by 27% over the same period last year, 61.58 million tons.Many predicted, according to the trend, exports this year will surpass last year (94 million tons), at least 100 million tons.
Cheap Chinese goods flood, to foreign enterprises brought a pretty big blow.The second - U.S. steel, iron and steel enterprise shares tumbled almost 70% in the last 1 years, laid off 3000 employees in North America last year.Britain, Europe's second largest steel company, red card iron and steel company, recently also repay debt under the pressure and apply for out of business.
China also is same.Following with 60 years history of China's largest steel mills to produce climbing after bankruptcy in September of this year in October, China's second-largest private hisin steel iron and steel enterprise, unable to repay debts and declared bankruptcy.South Korea steel situation is not optimistic.Into the enterprise to improve the work to the east of (another) program company to work for target embarked on sale early next year.
South Korea how to face difficulties?
According to the report, as a breakthrough, South Korea iron and steel company is committed to the production high quality products and strengthen the principle of customer marketing.
POSCO said in order to produce the offensive to protect the domestic market in China, with the original design of cheap, materials production and sales to import products.In addition, joint development of products of the company and customers, provide specialized solutions for individual customers, strengthen the "bundling that can only use the company product strategy (lock - in)".
According to the report, the modern company invest 129.5 billion won (about 712 million yuan) in the second cold rolling plant of zhong qing karatsu south road, senior automotive high strength steel plate, galvanized steel plate and aluminium plate, etc.) production equipment has been finished, plan will be put into production in January, the annual output of 500000 tons.To expand and intersection of clients, providing effective service, also recently set up a new core customer management