At the most critical moment, the Yangtze River Del

2022-08-21
  • Detail

Time of crisis: the steel trade in the Yangtze River Delta can't be saved without the help of the government.

spring is everywhere in the south of the Yangtze River. However, in the Yangtze River Delta region, the largest steel turnover market in China, steel trading enterprises with Mindong Ningde merchants as the main body, which is beneficial to the viscosity control and fine adjustment of the mold liquid, many are still trapped in the cold winter of debt, and even have begun to shake the foundation of some leading enterprises

this systemic crisis, which has lasted for nearly two years and is deepening, seems to be "approaching the cliff". Recently, the working committee of Fujian Ningde Municipal Party committee in Shanghai, the Liaison Office of Ningde Municipal People's Government in Shanghai, and Ningde Shanghai Chamber of Commerce issued the report on saving the systemic crisis of the steel trade industry to the Shanghai municipal government through the Shanghai Federation of industry and commerce. According to the report, the crisis has reached the "most critical juncture" and "it can't be saved by non-government actions". We sincerely request the relevant parties in Shanghai to take emergency measures to deal with the steel trade crisis, strengthen the guidance and coordination of the steel trade industry, and study and issue some solid and effective measures to avoid the collapse of the entire steel trade industry. According to incomplete statistics, at present, the total annual steel trade volume in Shanghai has exceeded 100 million tons, there are more than 40 large and small steel markets, more than 20000 steel trading enterprises of all kinds, the total income of industry and trade is 500 billion yuan, and the contribution of the steel trading industry to the GDP of Shanghai is nearly 3%. Among them, there are more than 20 steel trading markets related to Zhouning Shanghai Chamber of commerce enterprises with the most concentrated steel traders, involving 17 guarantee companies. They set up the national new material industry development expert advisory committee, which contributed nearly 70% of the market share. Their unique business model of steel spot market + financing guarantee companies was once widely sought after by the market and favored by banks. In recent years, this model has been rapidly replicated in other regions, especially in the Yangtze River Delta. In 43 steel markets in Wuxi and 44 steel markets in Suzhou, nearly 3/4 of them have established guarantee companies and established financing partnerships with banks. However, since the second half of 2011, under the double attack of the intensification of the international economic crisis and the adjustment of national macro policies, the steel industry, which has already had serious overcapacity, has continued to decline, and the continuous recession has led to serious losses for steel traders in the cracks. At the end of 2011, Shanghai Banking Regulatory Bureau issued a series of risk warnings to remind commercial banks to strictly control the loan risk points of steel trading enterprises. At the beginning of 2012, it was exposed that liguoqing, the boss of Wuxi Yizhou Group Ningde Zhouning, was seriously insolvent and his family ran away, which triggered a large number of negative media reports and further amplified the trust crisis of financial institutions. At the end of April, the CBRC again issued a document to remind commercial banks to be more vigilant when lending to steel trade enterprises. Some banks carried out risk prevention and control for steel trade loans and stopped the joint guarantee business and private guarantee company business. According to incomplete statistics from the Fujian Chamber of Commerce in Shanghai, the Shanghai Chamber of Commerce in Ningde City and the Shanghai Chamber of Commerce in Zhouning County, in 2011, the balance of loans from Shanghai commercial banks to steel trading enterprises reached 210 billion yuan; In 2012, the loan balance contracted to 150billion yuan. The continuous tightening of bank credit has left enterprises helpless; Coupled with the financing cost of up to 15% - 25%, a large number of steel traders were overwhelmed and fell one after another, and their related steel trade guarantee institutions were deeply implicated. These financing guarantee companies, which used to be the bridge for banking products to enter the steel trade industry, have now become tools to compensate enterprises and pay for bad debts of banks. At present, most of them are heavily indebted and insolvent. It is understood that over the past 10 years, Mindong has formed a close cooperative relationship between Shanghai steel trading enterprises and banks, and has always maintained a good industry reputation. In this adjustment, its continuous insurance and mutual insurance system has been severely damaged, encountered an unprecedented credit crisis, and loan overdue occurred frequently, leading to continuous litigation

the systemic crisis has not yet been solved. "Too much pressure!" Weimingsheng, President of Ningde Jiangsu Chamber of Commerce, who is in charge of preparing for the establishment of Ningde branch of Wuxi General Chamber of Commerce, said that in the most difficult moment, people's hearts cannot be dispersed, and it is still necessary to play the role of a platform for the chamber of Commerce to gather strength. On March 28, the repeatedly postponed annual meeting of Shanghai Zhouning chamber of Commerce was held in an extremely "tragic" atmosphere, hoping to transmit a positive energy in the crisis. "In order to have a position in the Yangtze River Delta for the people of East Fujian, and for the dignity and honor of Zhou Ning people, we should rely on faith and confidence to support, and we should hold our head firmly after confirming that there is nothing wrong!" In Suzhou Yangtze River Delta guarantee company, chairman Liu Yunbin said that he wanted to let the government and banks supporting him see that the flag of Suzhou Yangtze River Delta steel market would not fall, and let merchants see that the market has bright prospects. In Dongshan Avenue, Wuzhong District, Suzhou, the troubled city of Liwei steel is actively restructuring and transforming, in order to gradually solve bank and private debt, and unite merchants with development potential to get out of the crisis. At present, a powerful local stone enterprise has reached a 10-year cooperation agreement with it, registered and established the "rising sun stone market", and began to transform the site and recruit stone merchants to enter the site for operation. Both sides expressed confidence in the "comeback" of the market and hoped to get the support of the government, banks and other creditors. In the survey of the steel trade industry in the Yangtze River Delta, it is found that some enterprises have fallen in a desperate situation, some are still struggling in debt entanglement, and some are tenacious in difficulties, trying to keep the enterprise's banner alive, or trying to find a path of transformation and breakthrough, but the overall situation is not optimistic. Due to the serious shortage of funds, the capital chain is more tight, the bad debts of bank loans have risen sharply, banks and enterprises lose confidence in each other, and the crisis is still deepening. People in the steel trade circle said that from the perspective of the breadth and depth of the crisis, the strength of steel trade enterprises and non-governmental organizations alone cannot be effective in solving the systemic crisis

Zhou Huarui, President of Zhouning County Shanghai Chamber of Commerce and chairman of Shanghai steel holding group, also said that at present, the chamber of Commerce has led everyone out of the dilemma, but at present, it is quite "slim" that there is no way to solve the systemic crisis of the industry. He believes that the interest settlement period of March 20 is a watershed. The crisis has bottomed out. It is time for all parties to sit down and solve the problem. The problem is how to find a balance of interests. For the industry trend and future development, Zhou Huarui said with emotion: in the past, so many people entered this industry. After this round of brutal reshuffle, I don't know how many people are left. But this industry cannot die. It needs to recast a new model and a group of excellent people to do it. As for how far the traditional model can go, what is the new model, and to what extent e-commerce will transform the traditional model, it is still a new topic to be discussed. However, no matter what mode, it should adapt to the relationship between market supply and demand and the relationship between banks and enterprises. The current "Taobao" model of the steel trade industry "is that there is nothing wrong with the spot pledge model between steel trade enterprises and banks in the Yangtze River Delta, but some are artificially amplified in the process of operation, violating market rules and changing the essence of the model". Analysts said that the crux of the steel industry lies in the unreasonable structure and serious overcapacity. Now the market has developed from disorder to order, and steel mills and steel traders should return to rationality. Steel trading enterprises should be mentally prepared to explore new models that adapt to industrial policies and industrial development. He believes that the past five years will also be a period of coexistence of traditional spot trading, logistics parks, e-commerce and platform models. Great changes will certainly occur in the future. The mainstream will have breakthrough and innovative "chain owners" in the industrial chain and supply chain model, and they will lead the integration of resources on the chain; The traditional traders will turn to providing services for specific customers, and not all of them may have directly tested the hardness now. For the steel trade industry in the Yangtze River Delta, the latest signal worthy of attention is that on March 29, Li Keqiang presided over the Symposium on the economic situation of three provinces and cities in Shanghai, Jiangsu, Zhejiang and Anhui, and proposed that the Yangtze River Delta should take the lead in building an "upgraded version" of China's economy, requiring efforts to improve the quality and efficiency of economic growth. Fan Xigui said that in fact, the era of transformation and upgrading of the steel trade industry has arrived, and new models such as "Taobao" and "jd.com" have begun to appear, and how to layout the "Post Crisis Era" of the steel trade industry should be put on the agenda

Copyright © 2011 JIN SHI