Angang Group intends to merge and reorganize the steel industry with Linggang Group to speed up

The merger and reorganization of the steel industry continues. On June 23, Linggang announced that the company received a notice from the controlling shareholder Ling Gang Group and learned that Ansteel Group Co., Ltd. (hereinafter referred to as "Angang Group") is planning to reorganize with Lingang Group Change.

This is another reorganization of Angang Group after reorganizing Bengang Group last year to become the second largest steel group in China. After the reorganization, the crude steel production capacity of Ansteel Group will approach 70 million tons, and its domestic steel companies will be further consolidated.

A number of experts interviewed by a reporter from the Securities Daily said that the merger and reorganization of the steel industry will be the general trend. Under the trend of "reduction" of steel production capacity, steel companies have been replaced by merging and reorganization to expand the scale and optimize the capacity structure of steel. An enterprise maintains a means to maintain its own industry status. At the same time, the merger and reorganization of steel enterprises also meets the state's requirements for the reform of central enterprises and state -owned enterprise reform. It is conducive to the green and low -carbon high -quality development of the steel industry, enhance the industry concentration, strengthen the upstream and downstream collaboration of the industry chain, and enhance product competitiveness. The right to speak.

Reorganization is still in the planning stage

Angang Group was reorganized by the former Anshan Iron and Steel Group and Pan Gang Group in 2010. It is a central enterprise supervised by the State -owned Assets Supervision and Administration Commission of the State Council. In August 2021, Angang Group and Bengang Group realized reorganization. The Liaoning Provincial SASAC transferred 51%of the equity of Ben Gang to Ansteel for free. Ben Gang became the holding child enterprise of Angang. As a result, Angang Group has become the second largest steel group in China after China Baowu.

The reorganization of Angang Group and Lingteg Group is still in the planning stage. After the plan is determined, it is necessary to be approved by the relevant departments.

Regarding the reorganization of Ansteel and Ling Gang, Wang Guoqing, director of the Lange Iron and Steel Research Center, told reporters: "Angang Group and Linggang Group are located in Liaoning. The reorganization is conducive to Ansteel Group to incorporate most of Liaoning steel companies into its own. From the pace of the merger and reorganization of Angang Group in recent years, Angang intends to maintain its own industry position in the regional market. From the perspective of product structure, Angang and Ling Gang have a certain complementary. Industry status. "

Song Xiaowen, a senior researcher at the Shanghai Steel Union Research Center, told the Securities Daily that during the "14th Five -Year Plan" period of Angang Group, the "7531" (7531 "(70 million tons of crude steel, 50 million tons of iron essence, 300 billion -level operating income, 10 billion yuan Level profit) Strategic goal. In the context of strictly controlling steel production capacity, it is necessary to achieve rapid scale expansion.

"After the reorganization of the ADBOR, the production capacity of Ansteel Group reached 63 million tons, second only to China Baowu, ranking second in China, and the industry's right to speak and dominance continued to increase. The merger and reorganization of the domestic steel industry will continue to show a good demonstration, which will help the rapid advancement of the industry's merger and reorganization. "Song Xiaowen said.

Actively promote industry merger and reorganization

In fact, in recent years, the steel industry has been advancing mergers and reorganizations. China Baowu also reorganized with a number of local state -owned enterprises in the process of development. In 2019 and 2020, they have reorganized with Matan Steel Group and Tai Steel Group. In July 2021, China Baowu announced the proposed to be strategically reorganized in Shandong State -owned Enterprise Shan Steel Group; in April this year, China Baowu received 51%of the equity of Xingang Group. In 2021, the output of China Baowu Crude Steel was 120 million tons, ranking first in the world for two consecutive years.

Recently, the State -owned Assets Supervision and Administration Commission of the State Council issued the "Notice on the Reform of the State -owned Capital Investment Corporation". After a comprehensive assessment of the State Council's SASAC's pilot reform of the state -owned capital investment company, the SDIC Group, China Resources Group, China Merchants Group, China Building Materials and China China and China The five central enterprises of Baowu officially converted into state -owned capital investment companies.

"China Baowu has become a state -owned capital investment company. It will undoubtedly strengthen the operation of corporate reorganization capital, accelerate the gathering of steel industry, optimize the industrial structure, and enhance the overall competitiveness of the industry." , Technological innovation, green low -carbon, etc. have advanced experience. Through mergers and reorganizations, it can drive the joint high -quality development of enterprises in the system.

Wang Guoqing said that the concentration of my country's steel industry has improved through mergers and reorganizations, but it is still not enough compared to foreign countries. It is expected that the steel industry will be further merged and reorganized. The formation of large industrial groups will drive the integration and collaboration of various businesses of the entire system. It is also conducive to the formation of centralized procurement on raw materials such as iron ore and other raw materials, which is easier to achieve the stability and price control of raw material supply. In addition, it is also conducive to ensuring the stability of the supply chain system.

Song Xiaowen also believes that China's steel consumption experience has experienced high -speed growth, a large number of trading companies and rolling companies have grown rapidly, and investing in the smelting link, leading to a large number of steel mills with small blast furnaces and small turntables as the main body, and low industrial concentration. The merger and reorganization of the steel industry is the general trend. At present, China's steel production capacity is excessive. If the merger and reorganization will not be strengthened, it will only lead to malignant competition and cause market confusion. As an important industry based on the steel industry, it is necessary to maintain stable and healthy development.

Concentration improvement can help the integration of resources

Affected by factors such as the decline in upstream raw material prices and weak downstream market demand. In particular, the steel prices have declined all the way since mid -June, and steel companies have lost significant losses. A listed steel company told a reporter from the Securities Daily that the current steel industry has a weak bargaining ability to upstream raw materials. Although the cost of upstream raw materials has declined, the profit of steel companies is still severely squeezed. On June 23, although the increase in steel increased significantly, steel prices in the spot market were still falling. In terms of futures, as of the close of June 23, the main threaded futures rose 65 yuan/ton to close at 4235 yuan/ton, an increase of 1.56%; the main force of the hot roll rose 36 yuan/ton, closed at 4285 yuan/ton, an increase of 0.85%; In terms of data, according to Sinosteel.com, on June 23, the price of steel fell steadily, and the price of multiple steel products fell. For example, of the 24 markets in thread, there was no rise. The 19 markets fell 10 yuan/ton-90 yuan /Ton, the average price of 20mmHRB400E is 4224 yuan/ton, and the average price is reduced by 37 yuan/ton from the previous trading day.

"Weak demand is the main factor that leads to the decline in steel prices in June. The overseas Federal Reserve’ s interest rate hike is slightly more market expectations. The market sentiment is pessimistic and further dragged down the steel price. " It is expected that the outlook of sorrow, the cost of the cost of the cost leads to the expansion of the steel price decline. "

Why does the price of upstream raw materials fall? Steel companies still have serious losses? Song Xiaowen said that it is mainly because of the currently digested raw materials purchased in the early stage, so when the price of steel fell sharply, steel companies faced a large cash flow dilemma.

In addition, many industry insiders interviewed by reporters believe that with the advancement of the merger and reorganization of steel companies, the increase in industry concentration is the general trend. After the concentration is improved, it helps to integrate resources, strengthen market control, and to upstream raw materials for upstream raw materials. There will be more right to speak.

It is reported that since June 21, after the comprehensive landing of steel enterprise focusing companies has been reduced by 300 yuan/ton, individual steel companies have proposed a two -wheeled reduction on June 23, and the coke price was reduced by 200 yuan/ton. Analyst analysts of the coal industry of securities firms told the Securities Daily that the second round of decline is expected to land, but with the restriction of coke companies and the reduction of steel mills, subsequent coke prices have little room for decline.

According to the above -mentioned listed steel companies, due to the strong price of upstream coke, the industry has a large -scale steel company plan to collectively negotiate to coke the coke companies.

In the opinion of Hu Qimu, chief researcher at the Sinosteel Economic Research Institute, my country's iron ore depends on the existence of high foreign dependence, and the pricing power of iron ore is not in China. Competitiveness. Therefore, it is recommended that domestic steel companies should strengthen technology R & D and improve product competitiveness and develop to high -end comprehensive material vendors; the second is to adapt to the international market operating environment to control overseas management risks; the third is to use the international capital market to hedge the risk The influence of localization. (Xiang Yantao)

[Editor in charge: Wang Yuxin]

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