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2016, Steel Industry Prospect

Source: | Updated: Dec 05, 2015

2016 coming towards us, for the entire steel industry, it must still be a difficult year. With continued downward steel prices, steel production level of corporate profits dropped significantly, especially in inland steel prices, increasing loss area.

Coming year the steel industry will go from here? responsive to national economic development situation to upgrade and explore new space for development, or continue to brought to its knees in the plight of suffering? Different companies have different answers. For current situation, a few brief understanding as following:
Accelerate the pace of structural adjustment, improve the iron and steel industry concentration. Only by improving industrial concentration, comply with the economic development of the situation, the steel industry to increase efforts to adjust to the industry and the competitiveness of enterprises gaining the upper hand to win the development of space, from the current situation, must overcome three obstacles:
1. Must insist on regulatory of market access and unified, a fair and open and transparent market rules;
2. Adhere to clear and improve property rights protection system, a reasonable delineation equity ratio, the elimination of small private capital for mixed ownership economy concerns;
3. State-owned enterprises should play down the administrative, management of private enterprises to weaken the family based and run in accordance with the modern enterprise system, standardized management.

For us, there is no doubt that the future of steel value growth will be significantly higher than the number of growth, technology upgrading, restructuring, breed optimization, quality improvement will be the key; the product will be unique, refined, high direction, to deep processing of high value-added development. So for us, the high-quality rolling mill equipment will be a very big advantage.

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