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Improving the concentration of steel pipe industry

At present, some problems in the steel industry reflect the low concentration of the industry.But in recent years, China steel tube manufacturers have been pushing forward the merger and reorganization. However, the concentration of China’s steel industry has not been significantly increased. What’s the problem? The author believes that the degree of industry concentration and the degree to which it will be improved in the future have much to do with market demand, ecological capacity and resource conditions. China’s steel industry to improve the concentration of measures to local conditions, not blind comparison, do not “one size fits all.”
In addition, the stage of overcapacity is not to ban “ground steel”, the elimination of a part of the outdated capacity can be passed, the key is to promote the adjustment of industrial structure.

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A prominent feature of steel enterprises is the pursuit of economies of scale, enterprise joint reorganization is an effective way to improve the degree of concentration. In the process of development, the steel industry has formed a number of large enterprises that are important in their respective countries and even in the global market. For example, the first two steel companies in South Korea accounted for 85 percent of the country’s total crude steel output. Japan’s top four steelmakers account for 75% of the country’s total crude steel output. The eu’s top four steelmakers account for 73% of their total output of round steel pipe.The top four U.S. steel mills produce about 65 percent of the country’s crude steel. Compared with these countries and regions, China’s steel industry is less concentrated, with the top 15 mills accounting for less than 50% of the country’s total crude steel output.

Take the United States for example, the annual output of crude steel in the United States is 86.7 million tons, the first four enterprises accounted for 65 percent of the total output of the country, the average annual output of a steel enterprise is 14 million tons. And China’s crude steel annual output is of 928 million tons, the average of an enterprise crude steel annual output is to reach 150 million tons, can this compare the concentration of cold rolled round steel pipe? Take South Korea, where the first two steelmakers account for 85 per cent of the country’s crude steel output.The land area of the republic of Korea is similar to that of China’s liaoning province. The annual crude steel output of liaoning anshan iron & steel and benshan iron & steel is 51.65 million tons, accounting for about 80% of the total mild steel tube output of the province. Similarly, the concentration of steel industry in Japan and the EU cannot be taken as the reference value of the concentration of steel industry in China.

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