Over the past decade, with the rapid development of China's heavy industry, especially the real estate development, as well as cars into the tens of thousands of households, China's steel industry, the rapid expansion of production capacity, crude steel production with the price of cars and steel sales soared, the global iron ore seems to have To be all the Chinese steel enterprises swallowed, and then attracted the world iron ore prices greedy year after year soaring.

In 1996, China's crude steel production for the first time exceeded 100 million tons, with the United States and Japan roughly the same. 7 years later, China's crude steel production for the first time exceeded 200 million tons in 2005, the first break 300 million tons in 2006, the first break 400 million tons, the first break in 2008 500 million tons in 2010, the first broken 600 million tons 626 million tons. At present, China's steel production is equivalent to the world's top 15 major producing countries or regional production of the sum, while China's steel production is 6 times that of Japan, the United States nearly 8 times. What exactly is the kind of steel scale and steel production capacity?

September 2008 outbreak of the global financial crisis, but coincidence, but not the turning point of China's steel industry, in fact, 2007 China's steel "Great Leap Forward," the final sprint, it is the real "turning point." 2007 is the most glorious year for Chinese steelmakers, and all of the performance financial indicators of the year have hit the highest record of China's steel industry, including net profit, taxes and earnings per share.

However, since the third quarter of 2008, the Chinese steel industry began to "parabolic" on the right side of the downhill, until September 2008, 71 key large and medium-sized iron and steel enterprises have 23 losses, loss of 1/3; Month loss surface rose to 60% near; then November loss is close to 70%, then the loss of 62% in December, steel inventories and finished goods inventory surge. In the fourth quarter of 2008, the loss of the steel industry amounted to RMB47.6 billion. This is the first time since 2002, the Chinese steel industry "industry-wide" monthly loss and quarterly losses. It marks the total expansion of China's steel industry has come to an end, a serious excess capacity of bitter wine began to ferment.

In 2009, despite the global steel production cut 21.5%, but in the central 4 trillion investment plan under the strong stimulation of China's steel industry annual crude steel production increased by 13.4% over the previous year, the first increase in the world. However, until May 2009, China's steel industry was temporarily reversed the situation for several months of losses. However, when the loss of China's steel industry is still as high as 28%, a total loss of 16.5 billion yuan.

According to the Ministry of Industry reported that in 2010, China's imports of iron ore prices from an average of 90 US dollars / ton in January climbed to the end of the year 145 US dollars / ton, up 61%, the annual average price of imported iron ore 128 US dollars / ton Year rose 40 US dollars / ton, to this end, iron and steel enterprises throughout the year the cost of imports of iron ore rose about 19.6 billion yuan. However, China's large and medium-sized iron and steel enterprises in the same period to achieve profit of only 89.7 billion yuan, most steel prices in a low profit or loss state, the industry's overall profitability is not optimistic. Another group of data show that: 2010, BHP Billiton last year profits of 112.7 billion yuan, more than China's key large and medium-sized steel enterprises net profit and. China's steel industry in 2010 only 2.91% of the sales margin, well below the national average of 6.2% of industrial enterprises, profit margins in the domestic industry is the lowest.

At present, China's steel industry a total of more than 7,000 enterprises above designated size, of which more than 6,000 small businesses. China's iron and steel enterprises up to 3 million people in the 31 provinces and municipalities in the country, only Tibet and Ningxia provinces without iron and steel enterprises, the other 29 provinces are equipped with iron and steel enterprises, of which only 10 provinces in 2009 Crude steel production of more than 10 million tons, the other 19 provinces of crude steel production are less than 10 million tons, and some provinces even more than 20 million tons of steel production. It can be seen that the iron and steel industry in China, the earth everywhere, whether it is "big and" or "small and all", in short, princes separatist, their array, are for a common goal: bigger local GDP, Government revenue.

Unfortunately, in this low-level redundant construction behind, in addition to overcapacity, waste of resources, that is, low quality steel, can not meet the high-end needs. In 2009, China imported more than 2330 million tons of crude steel, 26.2 million tons of crude steel exports. China as the world's huge steel production power, although the serious overcapacity, there are a lot of inventory and inventory, but we still need every year from Europe and the United States and other developed countries to import special steel and high-end steel, which is China's steel industry conditions - Behind the total excess is the structural shortages and deformities, which is our greatest embarrassment and dilemma as a steel power.

This year is the "second five" planning start year, "second five" period will be the next 30 years of reform and opening up a new starting point. As last year's seventeenth session of the Fifth Plenary Session clearly pointed out: "accelerate the transformation of economic development is a profound change in China's economic and social fields, must run through the whole process of economic and social development and various fields." From the long-term strategic point of view, economic restructuring, industrial upgrading is the current and future through the theme of China's economic development, from the beginning of this year has been officially "broken".

Economic transformation, industrial upgrading, means that the end of GDP or GDP worship era. China's steel industry has been characterized by "high energy consumption, high pollution, resource", which has been able to meet the rapid growth of GDP under the economic growth model of extensive, extended and total expansion. , Real estate by the pressure and the global iron ore prices soared year after year, China's steel industry capacity expansion has come to an end, the front is the "dead end".

The future of China's steel industry will be more sad days. In order to achieve the sustainable development of the steel industry, we will no longer "iron and steel total expansion" as its mission, but to "steel quality improvement" as a new battle slogans, on the one hand, through the strong implementation of cross-regional mergers and acquisitions, re-integration Steel production capacity across the country to improve the concentration of the industry to eliminate the excess capacity of the industry; the other hand, through the vigorous implementation of technological innovation and invention, tackling high-end products, and truly enhance the quality of steel. This is the Chinese steel industry bigger and stronger the only way.