The steel industry is in the throes of a bubble and governments need not bail out much

2014-09-24 09:07:36

After several cities by eliminating or relax restrictions and other measures to support the property market, local rescue documents are issued, however, the government's rescue agitation not only exists in the housing market, coal, cement and other industries like steel continues in some time ago, half of annual report disclosure in the eight steel listed companies, a total of 250 million yuan RMB subsidies by the government from the middle of this year, and their total net profit of 969 million yuan, the government subsidy to total net profit ratio is as high as 25.8%, at that time, the government bailouts become the focus of discussion, discussion also has a lot of criticism

A don't want to be named government staff told the reporters, points out that the local government fiscal subsidies direct transfusion for the listed companies, one is the need to protect shell, second is for the sake of achievement projects, of course, to achieve your face scenery of coal industry of the area also is so, earlier, shanxi, Inner Mongolia and fujian local government successively introduced in view of the coal industry rescue policy around coal policy, public opinion is generally called a bailout in Shanxi Province as an example, the Shanxi Province's rescue 17 key points in the New Deal still lies in the reduction of various taxes and fees of coal, for coal enterprise burden

And the new policy that Inner Mongolia issues emphasizes the orderly and effective supply of coal in the region is the government really an elixir of elixir?

Iron and steel industry is currently experiencing excess capacity, continued weak downstream demand, steel prices volatile downward pain period, and solve the problem of overcapacity in steel, in addition to the need to state control, need to solve through market competition, more need to iron and steel manufacturers own adjustment of industrial structure, enhance product competitiveness to adapt to the present market situation, need through the market to adjust itself, more excess capacity to eliminate market don't need some analysts said in accept the China sankei shimbun reporters

For the coal industry, as a result of the recently enacted rescue policy mainly to coal enterprise burden and guarantee coal supply is given priority to, and the status of the domestic coal industry supply exceeds demand in the short term is difficult to change, therefore, rescue policy on prices boost limited while the iron is hot still need their own hard coal enterprises to improve their competitive ability, to enhance the level of earnings, under the circumstances of the coal market reform, not simply rely on the government's policy to protect China shenhua god east jin coal group chief engineer Mr. Shi ai well of coal mine in accept the China sankei shimbun reporters interview

Analysts point out that from the current operation situation of coal industry, the basic cause of the low thermal coal city is still the cause of the supply and demand relations, is closely related to the macro economic, while on the surface of intervention doesn't really help coal out of the woods, and the market will be more competitive, mainly concentrated in the capital of coal quality service aspects of reform and opening-up, China has long stressed the basic role of market in resource allocation, and by the 18th, the third plenary session is put forward to make the market plays a decisive role in the allocation of resources

But over the years, the government only invisible hand kept playing the roles of various rescue even in the eyes of some industries, the government has become the fire captain the personage inside course of study points out, the local government and its bid to save the city, not to focus more on top of the economic transformation because of the practice shows that if the local economy and tax relying too much on some industries with excess capacity, will bring a lot of risk and its rescue blindly, should take time to adjust the structure of the local economy to promote industrial optimization, to attract more talents for now, located on the iron and steel

Excess cement and coal industry under the influence of the regulation policy, is at a slowed products are small profit stage, however, this stage is the industry adjustment, necessary and squeeze the bubble phase, the government need not too much to carry on the rescue, grasp the rhythm can be steadily push forward for the adjustment of energy structure should be returned to the market level