The hottest steel and coal industry still has room

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Recently, Xiao Yaqing, director of the state owned assets supervision and Administration Commission of the State Council, pointed out at the promotion meeting of reducing leverage and reducing liabilities of central enterprises that we should further take effective measures to reduce leverage and reduce liabilities, and resolutely fight to win the battle to prevent and resolve major risks

Liu Xiangdong, an associate researcher of the Economic Research Department of the China Center for international economic exchanges, told yesterday that with the continuous promotion of steel and coal de capacity in the first half of the year, some zombie enterprises have been effectively handled, and the enterprise leverage ratio has decreased. However, it should be noted that although the current average debt ratio of the steel and coal industry is about 67%, compared with last year, its asset liability ratio has slightly decreased, but in terms of its speed and range, Not obvious

to investigate the reason, Liu Zhe, vice president of Wanbo New Economy Research Institute, told that on the one hand, the steel and coal industries are capital intensive industries, which are characterized by large capital investment. Compared with industries with abundant cash flow such as food and beverage, the leverage center of steel, coal and other industries is relatively high; On the other hand, until the conditioning is qualified, Jinan Hongjun Experimental Machine Manufacturing Co., Ltd. sincerely looks forward to cooperating with you in these two industries in the past few years due to oversupply, low prices and other factors, resulting in great challenges to the normal operation and cash flow of enterprises, resulting in high leverage ratio

Liu Xiangdong believes that although the steel, coal and other industries have improved their profitability after reducing production capacity, under the background of great downward pressure on China's economic operation in the second half of the year, with the weakening momentum of price rise, it is expected that the steel and coal industry will still face more pressure in the subsequent process of reducing leverage

Liu zhe believes that under the background of increasing industry concentration and stricter environmental protection requirements, some small and medium-sized steel and coal enterprises are still under great pressure for technological improvement and operation, and the leverage ratio remains at a relatively high level. For enterprises facing industrial transformation and upgrading and technological upgrading to directly convert carbon dioxide or methane into green substrates, the time window can be obtained by means of debt to equity swap, merger and reorganization, and the introduction of incremental funds or new technologies and models that often cause problems. While reducing the leverage ratio, it is more important to improve the management ability and core competitiveness of enterprises

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