In the absence of a penny cash integration of the province after the five private steel enterprises, Hebei Iron and Steel province of private steel mills incorporated work is still continuing. However, Hebei Metallurgical Industry Association, Hebei Iron and Steel has been able to batch in a short period of time to collect private enterprises, more rely on the local government policy instruments, including steel "black" production capacity of the "bleach" to become private enterprises to join Hebei Iron and Steel The biggest incentive.

Open channels for private enterprises

"Will soon open communication, with a few private enterprises to communicate how to make better use of our platform." Hebei Iron and Steel Group Corporation Purchasing Corporation of China Securities Journal reporter said that Hebei Iron and Steel will be included in the private sector to provide its overall Procurement platform, and private enterprises to enjoy the same group with the subsidiary of the same services and tariff treatment, but the final five private steel enterprises will choose the procurement platform, or rely on resources, the Group will not require the integration of procurement channels.

However, private enterprises on the integration of Hebei Iron and Steel advantage is not particularly fancy. A person incorporated into Hebei Iron and Steel's private steel mills, said that if the iron ore price system is still in the year when the iron and steel into the overall procurement channels for their temptation is also larger. As for the future will choose in Hebei Iron and Steel Group's procurement company for unified procurement, but also depends on how much to reduce the cost of procurement.

According to Hebei Iron and Steel's "progressive equity integration" reorganization, Hebei Iron and Steel Group to goodwill, management and technical services funded to private iron and steel enterprises, the establishment of equity investment relations, private steel enterprises to become members of the unit. However, as a state-owned enterprises in Hebei Iron and Steel how much technology, management advantages?

According to Qilu Securities statistics show that in 2009, private steel mill three tons of steel costs much lower than the state-owned steel mills, production efficiency is also much higher than the state-owned steel mills. 2009, Baotou Steel, Anshan Iron and Steel, Wuhan Iron and Steel's three tons of steel costs were 283 yuan, 604 yuan and 356 yuan, and Guofeng, Jinxi, Shagang's three tons of steel costs were 65 yuan, 65 yuan and 169 yuan The In 2009, Baotou Steel, Anshan Iron and Steel, Wuhan Iron and Steel's net assets yield were -3.36%, 3.21% and 2.28%, while the country Fengfeng, Jinxi net assets yield were 17.1% and 20.33%. While Hebei Iron and Steel (000709) in 2009 the return on net assets was 4.62%.

From the 2009 operating data, with the so-called management, technical advantages of Hebei Iron and Steel production efficiency is not better than the same belong to the private steel plant in Hebei Province.

Into Hebei iron and steel = production capacity "bleaching"?

"Key or qualification problems." Hebei Metallurgical Industry Association, told reporters to the China Securities Journal, although the efficiency and profitability is not at a disadvantage, Hebei Province, the reason why private steel is willing to go to Hebei Iron and Steel, the most important factor is to enter Hebei Iron and Steel Group can solve its capacity "black" problem. The source said the situation is too sensitive, he did not want to disclose to China Securities Journal reporter more details.

In June, the State Council issued a number of opinions on further strengthening the energy-saving and emission reduction efforts to speed up the structural adjustment of the iron and steel industry, and asked the NDRC to lead the organization to clean up the steel projects that have been built since 2005. Ministry of Industry official data is that without the central approval of steel production capacity of up to 300 million tons, accounting for half of domestic steel production capacity. The annual increase in domestic steel production in 2003-2007 was 25.23%, 32.64%, 24.1%, 24.5% and 22.7% respectively. The two groups of data were superimposed, which means that a considerable amount of steel production will appear in the inventory.

The China Securities Journal reporter learned from the Hebei Provincial Information Office, the Office of the various departments are involved in the clean-up of steel production capacity, which is based on the clean-up in July, "the iron and steel industry production and management conditions", the department will Will meet the conditions of enterprises into the "list of compliance enterprises", which is commonly known as "account". The Hebei Metallurgical Industry Association has revealed that, in addition to meet the "iron and steel industry production and management conditions", in Hebei Province, iron and steel production capacity of the "clean up" there is a hidden condition - that is actively involved in the steel industry mergers and acquisitions. In this way, actively defected to Hebei Iron and Steel, private steel mills have not been approved to get the "account" the best way out.

How important is the "account" to private steel mills? According to the Ministry of Industry and the insiders had previously revealed that for those who can not enter the list of the final enterprises, the Ministry of Industry in addition to coordinating the relevant departments in the water, electricity costs on non-compliant enterprises to implement punitive charges, but also the import of these enterprises Iron ore "cut off".