On June 21, the "Hebei Iron & Steel Shanxi Coking Strategic Alliance" news reported that the Hebei Metallurgical Industry Association and the Shanxi Coking Industry Association announced to the society that the two parties have reached a consensus on the establishment of long-term strategic cooperative relations and the establishment of long-term and stable supply and demand relations.
As the Hebei side is the Metallurgical Industry Association, one of the concerns of the Shanxi Coking Co. is: How is the authority of the Hebei Iron and Steel Association in Hebei steel enterprises? Can you order the world? This is related to whether the Jiaotie League is a show or a real name.
Another concern that people do not want to explain is whether they change the true feelings of the alliance. Is it Shanxi or Hebei? At a special meeting organized by the Shanxi Coke Association for the formation of a coalition recently, when it comes to forming coalitions, the coke kings seem to feel that they lack confidence. They believe that the current market for coke is not good, and the consensus that has formed is that Jiaocheng has become a buyer's market, and steel companies are even more lenient in the market. A person in charge of a Shanxi coke venture privately stated that if this coalition engages in Shanxi in the past two years, it will be more proactive. It is different now. The implication is that you are anxious for others.
According to industry analysts, these concerns are actually unnecessary. Liu Tailai, deputy secretary-general of the Shanxi Coking Industry Association, believes that the steel coke coalition is an effective means to reverse the unfavorable situation in the market and is also a win-win move between Shanxi and Hebei in the future. Last year, the total output of coke in Shanxi province was about 80 million tons, which accounted for about 40% of the country's coke production and 1/6 of the world's coke production. The source of coke for export was about 12 million tons, accounting for 80% of the country's annual coke export volume. 48% of the international coke market supply. Hebei has 202 existing steel production enterprises. Last year, the output of steel was 56.41 million tons, accounting for about one-fifth of the country's total steel production, ranking first in the country for four consecutive years. Li Tianrui, the first vice president of the Shanxi Coke Association, said that the iron and steel industry is the largest user of the coke industry and coke consumption accounts for about 79%. If 520 kilograms of coke per ton of crude steel are used, the demand for coke in the Hebei market will reach 20 million tons per year. Shanxi coke and if such a large customer to establish a strategic alliance, when the coke market is good, Hebei Iron and Steel enterprises will not be too costly; when the coke market is not good, Shanxi coke will not be too volatile. The idea of ​​such strategic cooperation will not only be aimed at Hebei iron and steel companies, it will not only exist in the downstream enterprises of coke, but will also expand to upstream coal companies.
The reporter also learned that the industry appeal of the Hebei Metallurgical Association cannot be ignored. It is not a simple industry self-government organization. It can give opinions when registering iron and steel companies and conducting annual inspections, so it is authoritative to form alliances. There are 202 steel production enterprises in Hebei, 74 of which are members of the association. Their steel production accounts for more than 96% of the province's total. Hebei believes that Hebei Iron and Steel and Shanxi coke to establish long-term strategic cooperative relations, there are at least five major benefits: First, the two sides are close neighbors, there are transport advantages; Second, the coke than the coal transportation economy, steel companies can relieve coke supply worries, save construction Coke oven investment; third is to help prevent unfair competition and price ups and downs; fourth is to help stabilize the quality of coke and steel quality; fifth is conducive to the orderly and healthy development of Hebei metallurgical industry and Shanxi coke industry, is a total of both sides win.
According to reports, the current pace of cooperation between the two sides is accelerating. The strategic cooperation agreement drafted by the two sides has basically taken shape. The two associations pledged to maintain regular information exchanges and coordinate the coke supply and demand enterprises with the shortest distance and the smallest sales radius, so as to minimize the logistics costs of coke supply companies and the coke cost of steel enterprises. The coke enterprises shall ensure the stability and quality of the coke supply according to the needs of the steel enterprises; the steel enterprises shall make payment according to the contract. The associations must negotiate regularly or irregularly, and negotiate a coke guide price every 3 months. Afterwards, the commencing price will be agreed upon once every six months or one year.
Some analysts believe that from the perspective of the current alliance, steel companies and coke enterprises should focus on tomorrow. In the future, China's economy will experience a new upsurge, and the demand for steel or energy will certainly increase. By that time, the significance of the Jinci-Shantou Ironworks League will be further highlighted.
As the Hebei side is the Metallurgical Industry Association, one of the concerns of the Shanxi Coking Co. is: How is the authority of the Hebei Iron and Steel Association in Hebei steel enterprises? Can you order the world? This is related to whether the Jiaotie League is a show or a real name.
Another concern that people do not want to explain is whether they change the true feelings of the alliance. Is it Shanxi or Hebei? At a special meeting organized by the Shanxi Coke Association for the formation of a coalition recently, when it comes to forming coalitions, the coke kings seem to feel that they lack confidence. They believe that the current market for coke is not good, and the consensus that has formed is that Jiaocheng has become a buyer's market, and steel companies are even more lenient in the market. A person in charge of a Shanxi coke venture privately stated that if this coalition engages in Shanxi in the past two years, it will be more proactive. It is different now. The implication is that you are anxious for others.
According to industry analysts, these concerns are actually unnecessary. Liu Tailai, deputy secretary-general of the Shanxi Coking Industry Association, believes that the steel coke coalition is an effective means to reverse the unfavorable situation in the market and is also a win-win move between Shanxi and Hebei in the future. Last year, the total output of coke in Shanxi province was about 80 million tons, which accounted for about 40% of the country's coke production and 1/6 of the world's coke production. The source of coke for export was about 12 million tons, accounting for 80% of the country's annual coke export volume. 48% of the international coke market supply. Hebei has 202 existing steel production enterprises. Last year, the output of steel was 56.41 million tons, accounting for about one-fifth of the country's total steel production, ranking first in the country for four consecutive years. Li Tianrui, the first vice president of the Shanxi Coke Association, said that the iron and steel industry is the largest user of the coke industry and coke consumption accounts for about 79%. If 520 kilograms of coke per ton of crude steel are used, the demand for coke in the Hebei market will reach 20 million tons per year. Shanxi coke and if such a large customer to establish a strategic alliance, when the coke market is good, Hebei Iron and Steel enterprises will not be too costly; when the coke market is not good, Shanxi coke will not be too volatile. The idea of ​​such strategic cooperation will not only be aimed at Hebei iron and steel companies, it will not only exist in the downstream enterprises of coke, but will also expand to upstream coal companies.
The reporter also learned that the industry appeal of the Hebei Metallurgical Association cannot be ignored. It is not a simple industry self-government organization. It can give opinions when registering iron and steel companies and conducting annual inspections, so it is authoritative to form alliances. There are 202 steel production enterprises in Hebei, 74 of which are members of the association. Their steel production accounts for more than 96% of the province's total. Hebei believes that Hebei Iron and Steel and Shanxi coke to establish long-term strategic cooperative relations, there are at least five major benefits: First, the two sides are close neighbors, there are transport advantages; Second, the coke than the coal transportation economy, steel companies can relieve coke supply worries, save construction Coke oven investment; third is to help prevent unfair competition and price ups and downs; fourth is to help stabilize the quality of coke and steel quality; fifth is conducive to the orderly and healthy development of Hebei metallurgical industry and Shanxi coke industry, is a total of both sides win.
According to reports, the current pace of cooperation between the two sides is accelerating. The strategic cooperation agreement drafted by the two sides has basically taken shape. The two associations pledged to maintain regular information exchanges and coordinate the coke supply and demand enterprises with the shortest distance and the smallest sales radius, so as to minimize the logistics costs of coke supply companies and the coke cost of steel enterprises. The coke enterprises shall ensure the stability and quality of the coke supply according to the needs of the steel enterprises; the steel enterprises shall make payment according to the contract. The associations must negotiate regularly or irregularly, and negotiate a coke guide price every 3 months. Afterwards, the commencing price will be agreed upon once every six months or one year.
Some analysts believe that from the perspective of the current alliance, steel companies and coke enterprises should focus on tomorrow. In the future, China's economy will experience a new upsurge, and the demand for steel or energy will certainly increase. By that time, the significance of the Jinci-Shantou Ironworks League will be further highlighted.
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