Iron and steel business usher in the voyage period

The transformation of the steel industry trough, for the rise of the business platform provides an opportunity. Today, iron and steel electricity business has sprung up, repeatedly favored by the capital.
Recently held in Wuhan, "2016 Metallurgy and Minerals International Conference", the iron and steel business has once again become the focus of hot. In many industry experts and business executives, iron and steel electricity business is in the outlet period.
Experts believe that in the industry consolidation stage, the industry will review the previous lack of reflection, sum up the lessons, was forced to explore a new way out, which is often the best time for the rise of new formats.
In fact, the rise of iron and steel business began in 2012 or so, coincided with the outbreak of domestic steel trade risk, suffered bank lending. At that time, steel trade financing there is a serious problem of repeated pledge, industry credit precarious, electric business intervention, so that the market more transparent, but also for the market to provide the necessary credit endorsement.
Almost at the same time, the steel industry began to decline. National Bureau of Statistics data show that after 2012, the total investment in the steel industry declined year by year, while the steel industry profits and prices since 2011 reached a high point, also began to enter the downstream channel.

"Since 2011, the steel industry concentration further decline, exacerbated the industry vicious competition." China Iron and Steel Industry Association, said Wang Liqun, vice president. In addition, the excess capacity of the steel industry is also related to supply and demand mismatch.
"In the steel industry supply side of the structural reform, through the construction of specialized service platform to solve the supply and demand mismatch is necessary." China Iron and Steel Industry Association Deputy Secretary-General Lu Wen said. This is the fundamental value and prospects of steel and electricity business. Also because of this, more and more capital began to flow to the steel electricity business