设为首页 收藏本站 休闲


China mergers shake up steel sector

2020-9-29 17:03| 发布者: 忘忧草| 查看: 260| 评论: 0

摘要: It was a long road to insolvency for Dongbei Special Steel Group, a state-owned producer in China’s northeastern industrial heartlands that first defaulted in March after Yang Hua, the company’s cha ...
China mergers shake up steel sector
It was a long road to insolvency for Dongbei Special Steel Group, a state-owned producer in China’s northeastern industrial heartlands that first defaulted in March after Yang Hua, the company’s chairman, was founded dead after a suspected suicide.

Efforts to save the company through months of negotiations between creditors and the Liaoning government, Dongbei Special’s owner, got nowhere

. On Thursday, eight defaults in, the company finally entered bankruptcy proceedings with a restructuring plan expected to be enacted next month.

Dongbei Special’s demise was the latest shock in a seismic week for Chinese steel, where the first act of a Beijing-orchestrated plan to forge a more efficient and less indebted industry is under way.

Similar to earlier attempts, Beijing hopes to use a strategy of closures, asset restructuring and mergers to create 10 groups responsible for 60-70 per cent of the country’s production by 2025.

“If they can merge with others, they merge,” says Li Hongmei, an analyst at S&P; Global Platts. “If not, they will ask the banks if they can change debt for equity. If that fails, then they will choose the last resort — that will be bankruptcy.”

The sector’s problems with overcapacity have global consequences. Last year Chinese steelmakers’ failure to cut production to match falling domestic demand led to a glut of Chinese steel flooding global markets, dragging down prices and throwing the global industry into crisis.

International steelmakers are fighting the rise of Chinese exports with a growing number of anti-dumping cases but Beijing says the continued rise in exports merely reflects Chinese steel’s competitiveness.

To increase it further, Beijing is pushing top-down consolidation. An arranged marriage between two of China’s state-owned steel groups officially started a week ago.

The absorption of Wisco by Baoshan Steel was the first step to come out of continuing discussions between Baosteel Group and Wuhan Iron & Steel Group aimed at creating a steel producer second in output only to ArcelorMittal.

Aside from clearing out “zombies” and creating super groups, Beijing is encouraging local governments to carry out debt restructuring plans to deal with indebted local steel companies, either via debt-for-equity swaps or bond issuance.

Last Sunday a restructuring plan including the issuance of corporate bonds was finalised for Bohai Steel Group, a producer owned by the Tianjin city government with debts of Rmb192bn ($29bn).

Debt-for-equity deals in steel are part of a broader attempt to deal with corporate debt, says Tomas Gutierrez of Kallanish, a research group. “There is definitely a trend and it’s definitely political, because creditors don’t agree to these things willingly or easily,” he says.

Pushing through the ambitious Chinese steel restructuring plan depends on Beijing’s ability to keep in line provincial governments who, worried about unemployment and tax income, often keep local lossmaking producers afloat using subsidies and loans.

President Xi Jinping’s rapid centralisation of power through a sweeping anti-corruption campaign has given him greater control over the provinces and their enterprises than his immediate predecessors.

The latest move in Mr Xi’s political house-clearing was the expulsion of 45 lawmakers from Liaoning, one of China’s most indebted provinces and home to Dongbei Special.

Mr Xi’s clout may improve the odds of restructuring, according to analysts, but they warn that deals announced last week may have a limited effect on steel overcapacity.

“The overall impact of recent announcements on oversupply is unlikely to be significant,” says Mr Gutierrez.

Restructuring deals tend to save profitable capacity by creating a separate entity with a lower debt burden so it can continue producing.

For Bohai, this means the formation of a subsidiary consisting of the company’s premium assets that will hold only Rmb50bn of a total debt pile of Rmb192bn.

For Dongbei Special, it is likely that Fushun Special Steel, a high-end steel pipe manufacturer, will be spun off and continue producing, analysts say.

The drive to preserve and promote high-end, coastal capacity while cutting off low-end, inland capacity is present throughout the restructuring plans, including the headline Bao-Wu merger.

“Coastal capacity is growing, and that’s the main trend of the next two years,” says Mr Gutierrez. “Baosteel has a plant in Guangdong, Wisco has one in Guangxi, and they are ramping up to just under 10m tonnes of capacity a year each by the end of 2017. What [international steel producers] really should be asking is what’s happening with the extra 50m tonnes of capacity being commissioned on the [Chinese] coast in the next two years.”

中国东北工业核心地带的国有钢铁生产商东北特钢集团(Dongbei Special Steel Group)的破产之路十分漫长。3月份,在集团董事长杨华被发现疑似自杀身亡之后,东北特钢出现了首次违约。




标准普尔全球普氏(S&P; Global Platts)分析师李红梅表示:“能合并的就合并。合并不了的会去问银行能不能债转股。如果这也不行,就会选择最后手段——破产。”




宝钢(Baoshan Steel)对武钢(WISCO)的吸收合并,是在两家集团持续磋商基础上迈出的第一步,旨在打造产量仅次于安赛乐米塔尔(ArcelorMittal)的全球第二大钢铁生产商。


近日,渤海钢铁集团(Bohai Steel Group)敲定了一份包括发行债券在内的重组计划。该集团由天津市政府所有,背负的债务高达1920亿元人民币(合290亿美元)。

研究集团Kallanish的托马斯?古铁雷斯(Tomas Gutierrez)表示,钢铁行业的债转股交易是处理企业债务更广泛努力的一部分。他说:“毫无疑问存在着这样的趋势,而且这种趋势无疑是政治性的,因为债权人不会愿意、也不会轻易同意这种事情。”








分析师表示,对于东北特钢,高端钢管制造商抚顺特钢(Fushun Special Steel)可能会被剥离,继续生产。








站长推荐上一条 /1 下一条