In 2008 , China's two famous steel companies - Tangshan Iron and Steel Group and Handan Iron and Steel Group jointly formed a powerful Hebei Iron and Steel Group, which was a sensation. And in time to enter 2010 , under the frequent action of several major industry giants, the new round of integration of the steel industry is also slowly unveiled. First of all, Jinan Iron and Steel integrated Lai (芜) Steel Group, and established “Xinji Steelâ€, which became the only steel main business listing platform of Shanxi (Dong) Steel. At about the same time, Baosteel Group, the largest state-owned steel giant in China, and Shagang Group, the largest private steel company in China, also signed a letter of intent for strategic cooperation in Beijing, saying that they will comprehensively carry out strategic synergies in technologies, products, markets and resources.
In recent years, China's steel industry is rapidly moving toward unity. Its short-term goal is of course to resist the rising price of imported iron ore and strive to have more say in future iron ore negotiations. The long-term goal is It is to increase its competitiveness and influence in the global steel market and build China's steel giant.
"A new round of strong alliances in the steel industry may lead to 'super steel enterprises', which will have a major impact on the hardware industry with steel as the main raw material. This effect will certainly be good or bad, but in the end it is a blessing than a disaster. On the one hand, the large-scale joint reorganization of steel enterprises can increase the resistance of Chinese steel enterprises to the price increase of iron ore, which may lower the price of steel; Also facing the danger of 'shopping big bully'..." said the China International Hardware Exhibition ( CIHS'10 ) organizing committee expert.
As the world's second largest hardware exhibition, China International Hardware Exhibition ( CIHS ) is currently the largest and most influential international hardware exhibition in China. Design authority and its founders organizing committee both Chinese hardware professional trading platform, but also the development of the hardware industry research, and the number 4000 hardware companies have cooperative relations, while maintaining contact with more than 50,000 domestic and foreign buyers of metal products .
Hardware Blessing: Looking forward to more voices in iron ore negotiations
The prolonged import of iron ore is still underway, but the situation is becoming less and less optimistic.
Although China Steel Association has repeatedly said that the current domestic iron ore stocks are enough to support steel production for two months, and called on domestic steel companies to suspend the import of iron ore to resist the price increase behavior of mining giants. However, last year's domestic iron ore import dependence was as high as 62% , so even if the China Steel Association's appeal received a response from domestic steel companies, we are afraid that it will not last long in the face of such high import dependence.
Facts have proved that the competitiveness of domestic steel enterprises is not good, and the iron ore import dependence draft will completely transfer the iron ore price increase to the product price. It is understood that as of
Hardware products are generally made of steel, iron, copper, aluminum and Other metal products, so the hardware industry is one of the most important downstream consumer industries in the steel industry. The rise in steel prices will have huge cost pressures on the hardware industry. Since China's hardware industry is dominated by small and medium-sized enterprises, and most of them rely on exporting low-end products, the ability to absorb raw materials is very weak. Even if the iron ore negotiations have achieved great success, the price of imported iron ore will only rise by 40% , but if all 40% of this is passed on to steel products, it will also have a fatal blow to the hardware industry.
   "Many steel giants in China are moving toward strong alliances, which will further increase the bargaining chip of imported iron ore and have more say in the future negotiations on imported iron ore, and then strive for a more reasonable import price of iron ore. Suppressing the trend of rising domestic steel prices in recent years. This is also a good thing for the hardware industry." Expert analysis of the China International Hardware Exhibition ( CIHS'10 ) Organizing Committee.
Hardware disaster: "Super steel enterprises" will "shop big bully"?
 As we all know, in all industries, the phenomenon that is most prone to "shopping big bulls" is always a monopoly industry, and the process of China's steel enterprises moving toward unity is actually a process of "going to monopoly."
 As a result of the ongoing mergers and acquisitions of domestic steel giants, there may be a limited number of “super steel enterprisesâ€. They do have more say in the imported iron ore field, but in other respects they also increase their voice and dominance, such as the pricing of steel products.
 The principles of economics tell us that a fully competitive market is a healthy and fair market. Under the premise of full competition, the price of all products is determined by the market, not by one or several companies. The monopoly market is just the opposite. Once a minority enterprise monopolizes the market, there may be a “price alliance†formed by monopolistic enterprises to increase product prices.
“Once the steel industry in China has a 'super steel enterprise' and forms a market with 'several ones', the price of steel will not be controlled by the market, forming the phenomenon of so-called 'big shop bullying'. For hardware companies, I absolutely don't want to see this happen." Experts from the China International Hardware Show ( CIHS'10 ) organizing committee said, "Of course, from the current situation, among the Chinese steel companies, state-owned enterprises occupy the majority. In the country Under the control of relevant economic policies, it is believed that this phenomenon of 'several ones' and 'shopping big bullies' is not so easy to appear."
"However, China's hardware industry currently has more small enterprises, and the overall competitiveness and ability to absorb cost pressures are relatively poor. It is often the case that the cost of raw materials is 'leaving the nose.' Faced with rising cost pressures, hardware companies are currently What we can do is to start from the product market and sales channels, strive to get more orders, and obtain more profits to offset the increased costs. To expand sales channels, we must go out and find opportunities to face more directly. Many potential customers and buyers. In the future, we will work hard to find an overall upgrade of the hardware industry and get rid of the current strong dependence on the raw material market.†A spokesperson for the CIHS'10 Organizing Committee finally said, “In 2009 , China International Hardware Exhibition ( CIHS'09 ), we invited more than 3,000 overseas professional buyers for hardware companies , effectively helping Chinese hardware companies to cope with the impact of the financial crisis.
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China International Hardware Exhibition ( ) is jointly sponsored by China Hardware Products Association, Cologne International Exhibition Co., Ltd., National Federation of Industry and Commerce Hardware and Electrical Chamber of Commerce, and China International Trade Promotion Council Light Industry Branch. 2 show the scale of the world, first in Asia, has 10 years of history, 2000 exhibitors, 5000 booths,
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