The Research On The Security Of Iron-steel Chain In China

Now, China is in the era of the high-speed economic development. As the pillar industry of the national economy, the iron-steel industry has become the basement of manufacture, agriculture, transportation and construction industry. In the last seven years, the iron and steel production of China ranks first in the whole world. And its production and consumption has a great influence on the world iron-steel development. However, the iron-steel industry of China is also facing internal and external problems, such as the high import dependence degree of iron ore, low industrial concentration and subdued downstream demand. Especially after the breakout of the financial crisis in 2008, the security problems of the iron-steel chain was increasingly prominent. Obviously, China is a big and commonly-recognized country of iron and steel around the world. Hence, facing the multiple and unclear competition environment, the security of the iron-steel chain becomes an issue not to be overlooked.For this purpose, based on the present research productions and the accessibility of data, the article built an industrial safety index system. And the industrial safety of iron-steel chain was analyzed from three aspects: upstream raw materials, iron-steel industry and downstream user. In more detail, the industrial safety index system was divided into four parts: the domestic survival environment, the international competitiveness, the industrial degree of external dependence and the controlling force. Then these first-grade indexes were sorted into several second-grade indexes.Basing on this, the result showed as follows: firstly, the upstream raw material of iron-steel in China was in the state of basic safe from 1995 to 2001. Then it dropped to the state of unsafe in the year of 2002 because of high import dependence degree of the iron ore and low competitive strength. Especially after the break of financial crisis, the domestic survival environment, the industrial degree of external dependence and the controlling force was aggravating gradually. Furthermore, the iron-steel industry was in the state of basic safe throughout the whole fourteen years. These second-class indexes indicated that the competitiveness of iron-steel product was increasing. But there were still some serious problems. The financial crisis put hard pressure on the iron-steel market in China. The trade competitive index turned to negative in January 2009. The overall industry needs restructuring and rejuvenation urgently. Thirdly, the state of domestic automobile security was unsafe between 1995 and 2004. Then, from 2005 to 2008, it improved to basic safe. Owing to the low technology added-value, the auto export market in China shrunk. And the structure of import product requirements kept still.Finally, the article put forward some countermeasures for the further development of the iron-steel chain in China.