Chapter 914: The Grim Situation of the Steel Industry (Ask for Subscription!) ）

After ending the call with Nangong, Xu Yinglong found Liu Haiyang's phone and dialed it, although Liu Haiyang was the person in charge of the knife factory, but unlike Wang Hansen, Liu Haiyang rarely contacted Xu Yinglong, he belonged to the kind of person who buried himself in me, don't bother me, only particularly important things will communicate with Xu Yinglong.

The phone was quickly connected, and Liu Haiyang's familiar voice came from the phone: "Hey, Mr. Xu, I'm Liu Haiyang!" ”

"Well, Mr. Liu, I went to the field a few days ago, and there was no signal on the phone!" Xu Yinglong explained briefly.

"It's okay, I know!" Liu Haiyang smiled and said.

"Is there something wrong with the phone call?" Xu Yinglong asked loudly.

"Well, that's the case, the large production line of our Tianlan Tool Factory has been built and will be put into operation soon, so I will report to you. Secondly, our Tianlan Iron and Steel Plant has also been renovated, and the equipment and technology have also been equipped, but now it is still up to you to determine whether it will be put into production immediately! Liu Haiyang said.

"What is the main purpose of the big production line, how many are there?" Xu Yinglong was a little depressed that he didn't know about this matter, but what was certain was that Liu Haiyang must have said it to himself, otherwise he would not be able to assert himself with Lao Liu's character.

"Well, I talked to you on the phone about this six months ago, and you said that our products are in short supply, and sales have been on the rise, so I was instructed to increase production to three times in the shortest possible time. After I came back, I discussed with other directors of the company to solve this matter, and everyone agreed that the pattern of the tool factory has been fixed, even if the production line is increased, it may not be able to increase the output three times at once, and if you want to solve this problem, you must break the original pattern. ”

"How do you do that?" Xu Yinglong asked with interest.

"We hired a professional design team to conduct a professional analysis of the current situation of the company, and made a solution, that is, to buy the nearby land for factory expansion. At the same time, the existing production line is managed by partition. The various products are produced separately and do not affect each other. After learning from the expansion model of Dazhou Liquor, our tool factory also acquired 300 acres of land around it, and demolished the original building to build a factory. Up to now, we have completed the construction of five large-scale industrial plants and added 25 new production lines, which can increase the output by more than 3.5 times. Liu Haiyang replied.

"Good. You don't have to worry about the sales of the product, as long as you can produce it, and the quality of the product is qualified, I can sell it. Xu Yinglong said.

"Okay, then I'll let the new production line start production tomorrow, and try to recover the cost in advance to create benefits!" Liu Haiyang said.

"You can do it yourself, by the way, what's going on with that steel mill?" Xu Yinglong asked again.

"Didn't you ask me to buy a steel mill?"

"I know that. It's just that what do you mean by asking me if I want to produce? Xu Yinglong said again.

"I don't know how much Mr. Xu knows about the development prospects of Huaxia Iron and Steel Enterprises?" Liu Haiyang asked in a deep voice.

"I don't know much!" Xu Yinglong said bluntly.

Liu Haiyang also knew that Xu Yinglong was not a professional manager, so his answer was also expected by Liu Haiyang, and immediately said: "As far as the steel industry is concerned, the problems it is facing now are quite serious, the market is weak, overcapacity, the upstream raw fuel is highly monopolized, and the environmental governance is becoming more and more stringent. ”

"Are you saying that the outlook for the steel industry is not optimistic?" Xu Yinglong asked.

"Yes. And it's not optimistic! The iron and steel industry is the basic industry of the national economy, and it is a technology, capital, resource, energy, and labor-intensive industry. In the past, it was an industry that the whole country vigorously developed, so now the steel industry has become one of the most serious and influential industries with overcapacity. Now the growth rate of the downstream steel industry has fallen, and the demand for steel has declined. The homogenization competition is becoming increasingly fierce and gradually spreading to high-end products. ”

"Affected by the slowdown in demand growth, the competition in the steel market is becoming more and more fierce, and the steel mills are in order to ensure the convergence of production and marketing. Fierce price competition has been launched, and it has gradually spread from the field of long products to sheet and strip. In the past few years, under the idea of transformation and development to high-end varieties to benefits, domestic steel enterprises have invested in the construction of plate and strip production lines on a large scale, due to the slowdown in consumption growth. The market for sheet and strip is becoming increasingly competitive. ”

Liu Haiyang continued: "In addition, there is another important reason that makes iron and steel enterprises unsustainable, that is, environmental constraints are more stringent, and the pressure on production and operation of enterprises is increasing. The full implementation of the new environmental protection law and a new series of standards for the steel industry has not only increased the assessment indicators, but also significantly tightened emissions. To this end, on the one hand, iron and steel enterprises will greatly increase investment in environmental protection and carry out a new round of environmental protection project construction; On the other hand, operating costs will also increase significantly. ”

"There is a heavy burden on domestic iron mining enterprises, due to the decline in iron ore prices, domestic mining enterprises have difficulties in operation, especially Anshan Iron and Steel, Shougang, TISCO, Hebei Iron and Steel and other self-owned mining complex raw material advantages gradually disappeared, and even become a burden of business development. The problem of heavy tax burden on domestic iron mines is prominent, which not only causes a large number of independent mines to stop production and reduce production, but also causes losses and production reductions in joint mining enterprises, which is not conducive to the safety of the domestic iron and steel industry. ”

"And now the cost of iron and steel enterprises is very high, the first two years of iron ore, coal and other raw materials prices continued to fall, to iron and steel enterprises to improve economic efficiency has brought a certain space. However, since the beginning of this year, the decline in iron ore and coal prices has decreased significantly, of which coal prices have basically stopped falling and stabilized, and iron ore prices are basically close to the bottom, and the possibility of further sharp declines has decreased. At the same time, the labor cost of enterprises is also increasing. In a word, the current iron and steel enterprises are seeking transformation, let's just break into it stupidly, the result can be imagined! ”

Xu Yinglong thought for a while and said: "Lao Liu, I understand the current situation and prospects of iron and steel enterprises you said, but what does this have to do with us?" The steel we produce is produced by ourselves and consumed, so we don't need to be linked to the market at all, so whether the market prospect is good or not has little to do with us, right? ”

Liu Haiyang didn't know how to answer Xu Yinglong's strange question, thought about it and said: "Mr. Xu, although our steel plant is self-produced and sold, objectively speaking, it has little to do with the market. But now, judging from the overall development of the steel industry, we don't need to produce at all, and we only need to buy raw materials with other steel mills to meet our needs. On the contrary, if we start production, all the expenses will be far more than simply buying raw materials. ”

"What, you mean that the cost of our own production is higher than buying from others, is that true?" Xu Yinglong asked in surprise.

In his mind, it would be cheaper to produce raw materials by himself than to buy other people's, after all, other steel mills would definitely make a certain profit by selling things, otherwise how could they feed so many workers!

Liu Haiyang replied in a deep voice: "Mr. Xu, although you may not believe it, but the fact is that the cost of our production is much greater than the direct purchase of materials!" So that's why we're struggling! ”

"Why is this, is it because our production line is not as good as others?" Xu Yinglong asked with a frown.

"That's not it, we are the Haiyun Steel Plant, the sixth largest steel mill in China, which was directly acquired, and their production equipment was only replaced the year before last, and they are not lagging behind overall."

"Is there something wrong with our production technology?" Xu Yinglong asked again.

"No, the production technology of the marine steel mill is also very advanced. Let's put it this way, this is not our reason, but the reason of the market, now all the steel industry in China is facing the serious problem of three low and one high, that is, low demand growth, low steel prices, low efficiency of steel enterprises and high pressure on the industry. In this case, in order to continue to survive, many companies can only continue to reduce the price of steel, and even lose money in production and sales, so the current steel price has hit a new low! Liu Haiyang said. (To be continued......)

PS: PS: I got up at four o'clock in the morning, and I really worked hard enough, I had to accompany my daughter-in-law to do prenatal checkups in the morning, and at the same time I had to cooperate with my mother-in-law to see a doctor, which was a tiring rhythm! But no matter how hard and tired you are, try not to break off, break it and hurt your character! As soon as you enter the starting point, you will be a passerby!