Research On The Efficiency Of Steel Industry Based On Listed Steel Companies

Steel industry is a fundamental part of national economy and also a symbol of the development of nation. Since the Reform and Opening-up, our steel industry has made a great progress, which makes our country become the largest steel-producing country in the world. But, the largest is not equivalent to the strongest, we got a lot problems to deal with in our steel industry.Initially, we analyze the state of our steel industry, exposing its problems. First, its market structure is not rational, especially comes to market concentration rate. Second, the quality of steel product is quite ordinary. Third, investment in innovation is not enough, compared with competitors of other countries. Fourth, the distribution of some steel companies are inappropriate. After this, we choose 25 listed steel companies to analyze their efficiency, by using Data Envelopment Model (DEA). Generally speaking, the advancement of whole industry efficiency is not positive. From the region level, east has the highest efficiency and west the lowest; From company level, Baosteel is most efficient among state-owned steel companies and PSV least efficient; From the distribution types, the sea-based companies has the highest efficiency and the market-based the lowest; We can find that technology change (tech) accounts for the most part of total factor productivity change, rather than efficiency change (effch). By using an econometrics model, we find R&D ability, company scale, resource endowment, sea-based distribution, local GDP per capita all have a positive effect on the efficiency of listed steel companies.Last, we can propose some advice for our steel industry based on what we have concluded. First, steel companies have to enhance their ability to innovate, strengthen innovation cooperation among companies, and our government should do their best to support them. Second, Deepens Merger&Acquisition to boost company scale and also industrial concentration rate. Third, reshape steel companies by scientific management. Fourth, we should adjust our industrial distribution in order to exploit the benefit of distribution. Fifth, guide private steel companies to boost the vigor and efficiency of steel industry. Sixth, organize some kind of joint iron ore purchasing enterprises in order to reduce the cost of iron ore.