Machinery Industry "12th Five-Year Plan" Optimized Brand Steel Export Structure is Being Optimized

Machinery Industry "Twelfth Five-Year" main optimization card

The China Machinery Industry Federation officially issued the “12th Five-Year Plan” of the “Machinery Industry” at the General Assembly held in March. The "planning" proposes that the total output value of the machinery industry, industrial added value, and main business income will maintain an average annual growth rate of about 12% during the "12th Five-Year Plan" period. The content of the "planning" can be summarized as "445865", that is, the four major achievements are gratifying, and the four types of problems are worrying; seizing the period of strategic opportunities, aiming at the goal of becoming bigger and stronger, implementing the five major strategies, adopting eight countermeasures, and doing six tasks well. It focuses on five areas and promotes the optimization and upgrading of traditional industries and the rapid growth of emerging industries.

During the “Eleventh Five-Year Plan” period, the achievements of China’s machinery industry have been reflected in four aspects: the scale of the industry has leapt to the top in the world, the capacity for equipment support has significantly increased, and the industrial structure adjustment has made some progress. The import and export trade has changed from deficit to deficit. surplus. However, at the same time, there are still problems in the development of the industry, such as the obvious weakness in independent innovation capability.

Looking at the domestic and international situation facing the development of the machinery industry in the next five years, the "planning" proposes that during the "12th Five-Year Plan" period, the machinery industry must, in accordance with the requirements of the scientific concept of development, take the transformation and upgrading as the main orientation of the development of the industry. . On the one hand, transformation and upgrading of traditional industries, on the one hand, accelerate the development of new industries. The implementation of the main attack high-end, innovation-driven, strengthen the foundation, integration of the two, green first five strategies, accelerate the pace of transformation and upgrading, and ultimately achieve the goal of improving the quality and efficiency of industry development.

Compared with the indicators that the machinery industry has grown at an average annual rate of more than 25% during the “Eleventh Five-Year Plan” period, the average annual growth rate of 12% during the “12th Five-Year Plan” period is slightly low-key. Luo Baihui, head of the International Die & Metals and Plastics Industry Suppliers Association, believes that the lower target is enough to leave enough space for the industry to change its development style. Looking at the specific targets, the "Plan" proposes that during the "Twelfth Five-Year Plan", the average annual growth rate of industrial output value, industrial added value, and main business income will remain at around 12%, and the average annual export growth will be about 15%. The contribution rate reached about 15%, and the total labor productivity (calculated as industrial added value) reached around 250,000 yuan/person-year. The profit rate of main business income increased from the current 7.16% to 7.5%, and the industrial added value rate increased from the current 25% to 26% to about 28%.

Regarding the development goals of high-end equipment, the "plan" clearly states that the proportion of modern manufacturing service industry has increased significantly, and the proportion of the revenue of the modern manufacturing service industry of the top 100 machinery enterprises to the main business income has reached about 25%. The growth rate of high-end equipment is more than double the average growth rate of the entire industry, and the market share of the domestic market must be significantly improved. In terms of further optimization of the organizational structure, the production concentration of the Top 100 Mechanical Enterprises should reach about 20%, and the production concentration of the top 5 automotive companies should reach 80%.

In addition, the "Plan" proposed that during the "Twelfth Five-Year Plan" period, the machinery industry should focus on promoting the five major areas of research, namely, the development of high-end equipment, emerging industry equipment, people's livelihood machinery equipment, key basic products, basic processes and technologies. Among them, high-end equipment includes advanced high-efficiency power equipment, large-scale petrochemical equipment, large-scale metallurgy and mining equipment, modern agricultural equipment, high-efficiency and low-emission internal combustion engines, and digital and intelligent instrumentation and automatic control systems. Emerging industry equipment includes new energy vehicles such as new energy vehicles, nuclear power, wind power and solar power, smart grid equipment, high-end CNC machine tools and precision machining equipment.

Steel Industry Chain Great Reshuffle Steel Export Structure Optimization

With the introduction of the "Twelfth Five-Year Plan", the direction of future development of the steel industry has become very clear. It can be said with certainty that the Chinese steel industry has entered the era of major reshuffling.

The development of China's steel industry has always faced such grim problems: excess steel production capacity; disorderly market competition; unreasonable industrial layout; uneven distribution of raw materials. With the outbreak of the global economic crisis in 2008, the deterioration of the domestic and foreign market environment, these problems have become increasingly prominent, and it is indeed time to have to boldly reform. From last year's elimination of backward production capacity, to vigorously promote the merger and reorganization of steel companies, and to the "12th Five-Year Plan" of the steel industry, all reflect the determination and intensity of the central reform.

First of all, it is wise to start from steel companies because the iron and steel companies in the entire steel industry chain are just in the middle of the chain and play an important role. It is self-evident. The Ministry of Industry and Information Technology proposed that the primary task of the steel industry during the 12th Five-Year Plan period is merger and reorganization. The proportion of the production capacity of the top 10 steel groups has increased from the current 48% to 60%, and 3-5 internationally competitive steel companies have been fostered, and 6-7 companies with stronger strength have been fostered. The significant increase in the concentration of steel production capacity and international competitiveness not only helps to reshape the order of competition in the domestic steel market, but also helps increase international cooperation and raw material procurement.

Secondly, the restructuring and reform between steel companies will inevitably drive and accelerate the reshuffle of the entire industry chain. According to Luo Baihui, head of the International Die and Hardware & Plastics Industry Suppliers Association, in order to expand the source of profits and market influence, major steel companies have already penetrated into the primary market on a large scale, and have continued to expand into downstream areas such as deep processing. The market of an agent is gradually being compressed, the pressure can only be continuously transmitted, and the days of the second and third agents will be even more tormented. With the continuous increase of the cost, the constant price transparency, and the normalization of the steel price, it will force Some of the poor steel trade companies gradually fade out of the market, and the number of steel trade enterprises is expected to shrink substantially. Returning to the upstream raw materials link, we can see from the “Hu Shitai Case” in 2009 that the Central Government has long been reorganizing the import and export of iron ore, but due to the fact that it involves too much, and the import and export of raw materials is only "Pain" is not the root of the problem, because disorderly competition in demand will inevitably lead to chaos in the supply market. Only if the demand establishes an order, it will inevitably be more effective if we come back to rectify the supply environment.

Of course, during the shuffling process, we will certainly encounter difficulties and resistance from all aspects. However, we must be clear that the steel industry is the pillar industry of the national economy and not only relates to the national economy and the people's livelihood, but also relates to the sustainable development of the Chinese economy. The strategic goal of development, so some of the local gains and losses must be subordinated to the country's macro development strategy, which is helpless. As for whether China's steel industry reform can achieve its immediate goal, we can only wait and see!

Since last year, China’s steel exports have been affected by international economic and national policies such as shrinking spreads at home and abroad, appreciation of the renminbi, and cancellation of export tax rebates for certain commodities. Due to the interweaving of various factors, the export of steel products has experienced an increase or decrease. According to customs statistics, steel exports in 2010 were 42.6 million tons, an increase of 73% year-on-year; imports were 16.43 million tons, a year-on-year decrease of 6.8%. From the monthly import and export data, in terms of exports, the export volume of steel products gradually increased from the beginning of the year to peak in June and then gradually declined. In July and August, it fell sharply for two consecutive months. In the following months, the monthly average exports The volume is maintained at around 3 million tons. Although it has recovered, it has remained at a relatively low level. The situation of “high middle and low prices” for steel exports throughout the year has been established. On the import side, China’s steel imports have maintained a monthly import volume of 1.3 million tons and an annual import volume of more than 10 million tons. The significant increase in China's steel exports in 2010 was mainly due to the low base of steel exports in 2009. Today, under the background of external pressure and internal policies, the export of steel products in China may decline in 2011.

Luo Baihui, director of the International Die & Metals and Plastics Industry Suppliers Association, believes that there are many factors affecting steel exports, which are mainly summarized in three major categories. One is the international economic situation, the second is the national policy orientation, and the third is the spread of global trade protectionism. In addition, the cost pressures caused by shrinking domestic and international spreads of steel products, the appreciation of the renminbi, and the rise in global commodity prices have also caused the export environment to deteriorate. Many factors have been intertwined, resulting in a year-on-year high and low levels of steel exports. Judging from the external environment, the domestic “adjustment of export tax rebate policy and the inadequacy of domestic policies have also added thorns to the steel exports.” According to customs data, from January to December 2010, our steel exports were 2.89 million tons and 2.49 million tons, respectively. 3.33 million tons, 4.31 million tons, 4.9 million tons, 5.62 million tons, 4.55 million tons, 2.8 million tons, 3.01 million tons, 2.86 million tons, 2.91 million tons, 2.85 million tons. From this it can be clearly seen that last year China's steel exports embarked on the inverted V curve, and the turning point was precisely the cancellation of China's partial export tax rebate policy since July 15 last year. At the end of January this year, rumors of export tax rebate adjustments hit again, and policy uncertainties have increased dramatically. According to relevant reports, the Ministry of Finance, the National Development and Reform Commission, and the Ministry of Commerce are brewing to reduce and cancel the export tax rebate for some products. The kinds of products that are under investigation to reduce export tax rebate rates are still dominated by high-energy-consuming, high-pollution, and resource-based "two high and one capital" products, and may involve rubber, non-ferrous metals, steel materials, and construction materials.

Under the background of the shrinking demand in the international market, Hubei's steel exports have turned against the market. On March 31, the Ministry of Commerce of Hubei Province released statistics. In 2010, the province’s steel export value was 880 million US dollars, an increase of 87.1% year-on-year; in the first two months of this year, the province’s steel exports reached 100 million U.S. dollars, and it still maintained a growth trend.

According to statistics from Wuhan Customs, from January to February, the total import and export value of Hubei's foreign trade reached 4.57 billion U.S. dollars, an increase of 33% year-on-year, of which exports were 2.49 billion U.S. dollars, imports were 2.08 billion U.S. dollars, and the total value of imports and exports ranked 12th in the country, and 6 in the center. The first place in the province. In February, the total value of foreign trade in Hubei was 1.79 billion U.S. dollars, an increase of 11.1%.

The steel export structure is being optimized. Taking Wuhan Iron and Steel as an example, after increasing the export intensity of “double-high” products represented by silicon steel and high-grade pipeline steel, the added value of products has increased. Last year, the average unit price of steel exports in Hubei rose from 691 US dollars per ton in 2009 to 713 US dollars per ton.

The export market is diversified. At present, the province's steel export market has expanded to 121 countries and regions, an increase of 7 over 2009. Among them, the market with more than 10 million US dollars worth of exports has increased by 10.

The EU, the United States and ASEAN are the top three trading partners in Hubei. From January to February, Hubei Province exported 1.03 billion U.S. dollars to the EU, 500 million U.S. dollars to the U.S., and 470 million U.S. dollars to the ASEAN.

In addition, from January to February, exports of mechanical and electrical products, clothing, and steel products in Hubei increased slightly, and exports of agricultural products increased significantly. Exports of mechanical and electrical products were 1.45 billion U.S. dollars, up 12.3%; garment exports were 200 million U.S. dollars, up 18.8%; steel exports were 100 million U.S. dollars, up 1.4%; agricultural products exports were 170 million U.S. dollars, up 40.2%.

Right now, due to the adjustment of export tax rebate policy, the rise of RMB exchange rate and the weakness of the international steel market, the difficulty of exporting steel products in Hubei has further increased. The person in charge of the Foreign Trade Division of the Department of Commerce of Hubei Province believes that in order to cope with many unfavorable factors and maintain the growth of steel exports, enterprises must accelerate the adjustment of export structure. Taking WISCO as the representative, facing the complicated international steel market situation, WISCO actively adjusted overseas marketing strategies, focusing on the development of emerging markets, expanding the export ratio of “double-high” products, diversifying the channels of customers, and consolidating and enhancing the WISCO brand. The international market share and influence. By strengthening measures such as pre-sales and after-sales services, customers' loyalty to products has been continuously improved.