China's Iron and Steel Enterprises Continue to Enter Top 500

The United States "Fortune" magazine recently announced the "2013 World Top 500 List." A total of 95 companies in China have been on the list. The total income of companies listed on the list amounts to 5.2 trillion U.S. dollars, accounting for 17% of the total revenue of the top 500 companies.

Among them, among China's iron and steel production enterprises, Baosteel Corporation, Hebei Iron and Steel Group, Shagang Group, Shougang Group, Wuhan Iron and Steel Group, Xinhua International Group, Anshan Iron and Steel Group and other seven companies have entered the rankings.

In addition, several companies involved in the iron and steel business such as China Railway Materials Co., Ltd., Zhejiang Property Group, China Minmetals Corporation, etc. are also on the list.

The iron and steel production companies and the steel-related companies listed on the list, indicating that China's steel industry in the global economic downturn, shrinking market demand in 2012 still achieved good results, but some issues exposed in the list, still worth thinking about the steel industry And wake up.

First, among the seven steel production companies on the list, the ranks of four companies, including the industry's “big boss” Baosteel, have fallen: Baosteel fell by 25, Shougang dropped by 27, Wuhan Iron and Steel dropped by 7 and Angang dropped by 31 ( Ranked second to last in the list of 95 companies.

Second, although the number of companies in the steel industry occupies the “big head” in the list of Chinese companies, the top 500 rankings in the US “Fortune” magazine focus on operating income. Therefore, this list does not explain the profitability of the company.

It is not difficult to find out through the analysis of the business data of the listed companies that there are also many companies that have lost or hardly made money in the Fortune 500 companies.

It is worth noting that among the seven steel production companies on the list, the net profits of Hebei Iron and Steel Group and Angang Group are negative.

A set of statistical data from domestic sources also illustrates the dilemma of the steel industry: In 2012, 80 key large and medium-sized steel companies realized a total sales income of 3544.1 billion yuan, a year-on-year decrease of 4.3%, and a profit of 1.58 billion yuan, a decrease of 98.2% year-on-year. %, sales margin is only 0.04%. "Big but not strong" has always been a bottleneck that has plagued the development of China's steel industry.

The increasing production capacity, while diluting the profits of the industry, has further hindered the development of China's steel industry.

Therefore, in order to realize the transformation of China's steel industry from "big to strong", we must focus on "controlling production capacity and adjusting the structure".

Specifically, it is necessary to seize the opportunity of environmental protection agencies to step up efforts to control air pollution, further eliminate backward production capacity, effectively control production, and increase industrial concentration; adjust and optimize the steel industry institutions, adhere to sales and production, give priority to safeguard the market. The production of products with good sales and strong profitability will reduce the products with poor market sales; actively promote product upgrades, continuously improve the quality of development through the transformation and upgrading of enterprises, and then improve the profitability of enterprises.

In addition, local governments also need to change their concepts, establish a correct view of achievements, and resolutely close down a group of small and medium-sized enterprises with low capacity and serious pollution, and at the same time increase support for advanced production capacity.