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STATUS OF FOREIGN INVESTMENT
According to the statistics of MOFCOM, 4 foreign investment projects in Metallurgy industry(Metallurgy Industry (Code C32) hereinafter is in accordance with the National Economic Industrial Classification (GB/Tavb4-2202）.) were newly set up in 2009, 8 less than that of the same period in the last year, and the amount of the actual utilized foreign capital reached USD 423,920,000, down by 13.99％
year-on-year. The number of newly established foreign invested enterprises and the amount of the actual utilized foreign capital accounted for 0.02％and 0.47％
of the national total number or amount of foreign capital absorption in the Metallurgy industry during the same period.
According to the source of foreign capital, calculated by the amount of the actual utilized foreign capital, in 2009, countries or regions: Br. Virgin Is, Hong Kong, Japan, Samoa, Korea Rep ranked No.1 to No. 5 in the Metallurgy industry regarding the amount of FDI, accounting for 30.87%, 26.98%, 22.08%, 9.69%, 2.93% of the total amount of the actual utilized foreign capital of the industry separately.
In Metallurgy industry in 2009, ten Asian countries/regions (Hong Kong, Macau, Taiwan, Japan, Philippines, Thailand, Malaysia, Singapore, Indonesia and Korea) newly set up 4 enterprises in China, with the actual utilized foreign capital of USD 234,040,000, down by 55.56％
and down by 21.89％
separately year-on-year. The number of the newly established enterprises and the actual utilized foreign capital accounted for 100％
and 55.21％
of the national total number or amount of foreign capital absorption in the same period.
According to regional foreign capital absorption, 1 foreign-invested Metallurgy enterprise was newly set up in the Eastern area, with actual utilized foreign capital of USD 362,110,000, accounting for 25% and 85.42% of the national total number or amount of foreign capital absorption in the same period. In the Eastern area, Guangdong Province, Jiangsu and Hebei Province ranked among the tops with respect to actual utilized foreign capital, with the actual utilized foreign capital of USD 228,980,000, USD 77,560,000 and USD 20,460,000, accounting for 54.01%, 18.3% and 4.83% of the total amount of the actual utilized capital of the industry in the Eastern area separately.
1 foreign-invested Metallurgy enterprise was newly set up in the Central region, with actual utilized foreign capital of USD 32,870,000, accounting for 25% and 7.75% of the national total number or amount of foreign capital absorption in the same period. In the Central region, Hubei, Anhui and Hunan Province ranked among the tops with respect to actual utilized foreign capital, with the actual utilized foreign capital of USD 24,000,000, USD 4,870,000 and USD 4,000,000, accounting for 5.66%, 1.15% and 0.94% of the total amount of the actual utilized capital of the industry in the Central region separately. Among them, Anhui Province had 1 newly established foreign-invested enterprises.
2 foreign-invested Metallurgy enterprises were newly set up in the Western area, with actual utilized foreign capital of USD 28,940,000, accounting for 50% and 6.83% of the national total number or amount of foreign capital absorption in the same period. Guangxi Zhuang Autonomous Region and Sichuan Province ranked among the tops with respect to actual utilized foreign capital, Among them, Sichuan Province had 2 newly established foreign-invested enterprises. Guangxi Zhuang Autonomous Region use actual utilized foreign capital of USD 28,940,000, accounting for 6.83% of the total amount of the actual utilized capital.
According to utilizing manners of the foreign capital, newly established projects of Metallurgy industry in 2009 are as follows : 3 Chinese-foreign equity joint venture projects, 1 wholly foreign-invested projects, The amount of the actual utilized foreign capital reached USD 137,350,000 and USD 286,570,000 separately．
DEVELOPMENT OF CHINA’S INDUSTRY
In 2008, with the increasing impact of international financial crisis, the economic growth has apparently slowed down and the lack of demand has shown in the market. Owing to the issuance of a series of policies and measures in maintaining the economic growth, some confidence has been restored in China’s steel market and some consumption has been made in the steel stocks. However, the benefits of the steel industry were still in declining trend, and the prospect of the industry was not so optimistic
The total industrial production of steel industry in 2008 was RMB4.4082t, up 31.36% year-on-year, and the growth rate was 4.4% lower than the same period in 2007; the total profit was RMB147.5b, down 13.7% year-on-year; the industrial sales value was RMB4.32607t, with an increase of 30.5% year-on-year, and the growth rate decreased by 4.6% over the same period in 2007.
In China’s steel industry, the accumulated outputs of crude steel and rolled steel were 500.488m tons and 581.773m tons respectively in 2008, up 1.1% and 3.6% compared with 2007, and the growth rates decreased by 14.6% and 19.1% respectively over the same period in 2007. Since October 2007, the output of crude steel has been significantly reduced for three consecutive months, thus the steel stock was effectively consumed, easing the contradiction between supply and demand of resources in the market.
In 2008, the sales income of 71 large and medium-sized steel enterprises was RMB2.565059t, increasing by 24.7% compared with 2007; the profits and taxes were RMB194.988b, decreasing 23.17% decline as compared with 2007. There were 15 companies running in the red during the whole year, with 21.13% in range of loss; the amount of loss of these enterprises was RMB8.464b.
In the aspect of imports and exports, the export of China’s steels was RMB59.23m tons in 2008, decreasing by 5.46% year-on-year, and this was the first annual negative growth since 2003; the import of steels totaled in 15.43m tons, decreasing by 8.6%; the net export of steel products totaled in 43.8m tons, down 4.33% year-on-year; the net export of steel billets was 1.04m tons.
There are three main reasons for China’s steel industry encountering severe difficulties and challenges in the second half of 2008:
First, the international financial crises brought serious challenges and impacts, resulting in the significant shrinkage of the global credit market. The economy in developed countries was in great recession and apparent shrinkage was shown in global market, thus the global steel industry has suffered significant impact and influence.
Second, under the international financial crisis, the deep-seated contradictions and problems of China’s economic operation have appeared collectively; in addition, China’s economy entered the downward range of cyclical development, the national economy met a tremendous decline and significant shrinkage was shown in the demand of domestic market, therefore great impact and influence have been brought in the steel industry.
Third, the contradictions and problems in the development of steel industry for years appeared at the same time, which made the steel industry lack of capability to respond to and resist the crises. In 2008, the output of ten steel companies with the largest crude steel yield accounted for 42.5% of the total output of crude steel; the concentrated extent was low within the industry, the enterprises with small scale distributed in scattered way, and disordered competitions always existed. |
