2012 steel industry: strict control of steel production capacity is still the main theme

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“In October, the profitability of the steel industry was at the lowest level in history. The sales profit of 77 large and medium-sized iron and steel enterprises included in the China Iron and Steel Association statistics was only 0.47%, and the monthly profit was 1.375 billion yuan, down 82.6% from September.” China Steel Association Party Committee Deputy Secretary Luo Bingsheng recently said that "high output, high cost, low efficiency" is the operating characteristics of the entire steel industry from January to October this year. Luo Bingsheng predicts that in 2012, the steel industry will continue to maintain the overall overcapacity of the whole industry, and the market demand will weaken. The whole industry should control the total amount and improve and strengthen the construction of the steel industry chain. From January to October, the steel industry as a whole is in a state of high production, high cost and low efficiency. The industry's profit is at the lowest level in history, and the number of corporate losses is also increasing. At the same time, the rising price of imported iron ore has made the operating conditions of steel companies worse, and the sharp increase in fuel prices has also squeezed the meager profits of enterprises. Luo Bingsheng believes that the fundamental reason for the high cost and low efficiency of the whole industry is the high growth of total production. The high total production of crude steel has caused an increase in high-priced imported ore. At the same time, due to the high output, the supply of steel in the domestic market has exceeded demand, which has led to a decline in steel prices. Luo Bingsheng said that this kind of operation situation is completely contrary to the whole industry's main direction of accelerating structural adjustment and optimization, and accelerating the transformation of development mode. It should be highly valued by the whole industry and take decisive measures to reverse high output, high cost and low efficiency. The running state. “In 2012, the steel industry will still face a situation of overcapacity and weakening market demand.” Luo Bingsheng predicted this. It is expected that the production capacity of the steel industry will further increase, and the contradiction of overcapacity will become more prominent. Data show that from January to October this year, the fixed assets investment of the ferrous metal mining industry was 102.9 billion yuan, an increase of 17.4% over the previous year; the fixed assets investment of the smelting and rolling processing industry was 313.6 billion yuan, an increase of 18.9% over the previous year. Faced with the current grim situation, Luo Bingsheng said, “In 2012, the steel industry must control production capacity!” Enterprises should proceed from the actual needs of society, insist on organizing production according to actual needs, and achieve a basic balance between supply and demand in the domestic steel market. Steel prices are basically stable. . If the total production volume cannot be effectively controlled, there will be a situation in which the domestic market is oversupply this year, the market price has fallen across the board, and the business operation is difficult, and even more difficulties may arise. In addition, Luo Bingsheng also stressed that under the premise of economic globalization, especially when energy and resource prices are at a high level and steel production costs are greatly increased, enterprises should strengthen and attach importance to the upstream and downstream industrial chain of steel production. Construction. Including the long-term stable supply of industrial chains mainly based on iron ore and coking coal, which is the basic supply basis for ensuring the stable operation of the steel production process. Another industrial chain is the construction of an industrial chain between the use of steel products after they are produced. The construction and strengthening of the above two upstream and downstream industrial chains is a concentrated expression of the overall strength of the enterprise, and also the main way for enterprises to improve their efficiency and enhance their competitiveness.

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