Private steel "running" triggered industry "earthquake"

Recently, the owner of Tangshan Baoqiang Iron & Steel Co., Ltd. was suspected of having a broken capital chain and was unable to pay a huge amount of private loans. The news of “running” caused an industry “quake.” Although he himself has been controlled by the police, its impact on the industry is self-evident. In this connection, the reporter conducted interviews with related industries and private organizations. Wang Dayong, secretary-general of the Provincial Metallurgical Industry Association, believes that the steel industry is a restrictive development industry, and it is very difficult for private enterprises to solve the problem. In particular, liquidity is difficult to solve, which directly affects the survival and development of enterprises. A person in charge of a private lending institution stated that it was precisely because of the hardships of enterprises that they had spawned private ***. Once companies could not repay and run, it was the interests of many fund raisers.

Private steel companies: expansion of production capacity is a double-edged sword. In an interview with a number of Tangshan iron and steel enterprises, the main reason for the fracture of the capital chain of Baoqiang Iron and Steel Co., Ltd. is that it is plunged into high-level private loans, but also It is related to the rapid expansion of the company and the downturn in the industry. As the fixed assets investment in the steel industry is huge, and it has economies of scale, companies tend to expand their production capacity, the cost of active transformation is high, and their power is insufficient. Once they encounter the downturn in the industry, they will bear unresolved issues.

According to the data from the Provincial Metallurgical Industry Association, crude steel production in the Hebei steel industry accounted for 26.30% of the country's total in January-June, with a total profit of 6.904 billion yuan, a year-on-year decrease of 53.12%; and national key enterprises accounted for 1-5 months of crude steel production. With 83.17% of the national total, profits only reached 2.533 billion yuan, a decrease of 94.25% year-on-year. In such a severe market situation, private steel has encountered morbidity, and production and management are difficult to maintain, which is a matter of course.

**Institutions: *** can only save urgently, and can't be interviewed for dry foods. An industry insider who asked not to be named stated that in Tangshan Fengrun and Fengnan areas, it is a common phenomenon that private steel companies raise funds from the private sector. District, this kind of private lending phenomenon is particularly prominent, “the steel enterprises in Fengrun District are almost all SMEs, it is difficult to obtain funds from banks, private lending has become the main channel.” The person also disclosed that the monthly interest rate of such loans At 2 points and 5 cents, monthly interest rates of 3 and 4 are also common, with high interest rates even reaching 5 or 6. This means that the borrower needs to return 30% to 60% of the principal a year.

With regard to private lending, the reporter interviewed a government agency in the provincial capital, which has a maximum loan of 50 million yuan and a monthly interest rate of 3 points. The person in charge said in an interview: "In fact, the so-called *** should be treated differently. In special circumstances, such as the acceptance of ** can not be honored in time, or there is a gap in working capital, urgent need to use millions of dollars or tens of millions of dollars Things often happen, and when they are used up, they are good for companies and they are also good for lenders. The key is that *** cannot be used as a dry food. If companies use *** as a start-up fund, they must bear high interest rates. This increases the risk. ."

According to the staff of the metallurgical association, during the period of rapid development of the steel industry, annual interest rates of 30 and 40% may be affordable. However, in the event of a downturn in the market, the loss of the company will inevitably be unsustainable.

“Running the road” phenomenon: private enterprises touched the big, state-owned enterprises affect the small Tangshan Baoqiang Iron and Steel Co., Ltd. boss Chen Zhiqiang “running road”, a great touch on private enterprises, and relative to state-owned enterprises, the impact is limited.

After the incident, villagers queued up for refunds in other nearby factories. According to a person from a local steel mill, the company has also been affected. It is said that within a few days, tens of millions of funds have already been withdrawn and some people even have no interest.

"Chen Zhiqiang's runoff incident is very likely to cause the overall contraction of the steel industry, and the steel trader's capital chain may again face the risk of fracture. The integrity of the steel industry is again questioned." A private steel company executives Said.

Compared with the difficult problem of private enterprises, state-owned enterprises maintained a good environment at this time. According to reports, a local state-owned enterprise in Tangshan not only did not encounter complications, but also through the adjustment of product structure, increased exports, and international steel Trading companies cooperated with hundreds of millions of dollars to ensure adequate funding.

Industry Association: The government organization “banking” docking continues to in-depth study in the field of the Provincial Metallurgical Industry Association Secretary-General Wang Dayong: Tangshan Baoqiang Iron & Steel Co., Ltd. “Running Road” incident on the surface is an accidental phenomenon, but the real reason is ** difficult, high interest rates. At present, steel is a restricted development industry. Therefore, it is more difficult for banks.

In this regard, the industry association has repeatedly made recommendations to the relevant departments of the provincial government, hoping to pay attention to the healthy development of the steel industry. In this regard, the Provincial Ministry of Industry and Information Technology has also specifically opened the industry's "bank and enterprise docking," but for the huge demand for steel industry, it is a drop in the bucket. In the first half of this year, the steel industry faced severe market demand, increased steel production, and a drastic drop in economic efficiency. The recently introduced macroeconomic policy of “stabilizing growth and expanding domestic demand” is expected to stimulate demand for steel products, but it is difficult to change the normal state of supply oversupply. It is expected that there will be no obvious improvement in the situation in the late period and companies will continue to operate in a low-efficiency operation.