Steel structures account for less than 5% of all buildings in China. Compared with developed countries, there is a large market space in the future.
Overcapacity and declining utilization rates have been the "chronic diseases" of China's steel industry. Zhang Changfu, secretary general of The China Iron and Steel Association (CISA), recently introduced that by the end of 2012, China's crude steel capacity was about 976 million tons. Combined with last year's output of 717 million tons, the utilization rate of Crude steel capacity last year was only 73.4%. So, how can China's steel industry solve the problem of excess steel production? The answer given by Hangxiao Steel Structure listed company is "using green building to resolve the embarrassment". The so-called green building is a building that saves resources (energy, land, water and materials) to the maximum extent, protects the environment and reduces pollution, and provides healthy, applicable and efficient use space for people within the whole life cycle of a building.
In January this year, the State Council upgraded green building to a "national strategy", clearly proposing that 1 billion square meters of green buildings should be built during the 12th Five-Year Plan period, and that 20% of urban buildings should meet the green building standard by the end of the 12th Five-year Plan period. Qiu Baoxing of the Ministry of Urban and Rural Development has publicly estimated that China will invest at least 1.5 trillion yuan in energy-saving building projects by 2020.
According to Yang Qiangyue, vice President of Hangxiao Steel Structure and general manager of Hangzhou Hangxiao Architectural Design Co LTD, the official focus on green buildings will also have a positive impact on steel-framed homes. Because, although housing of steel structure serves as bearing skeleton with member of steel structure, but can provide the water that form a complete set however on the function, warm, electricity, hutch, defend, intelligent network and communication equipment and product are optimized "integrated body", the standard of each respect that is complete green building. In developed countries such as Europe, Australia and Japan, prefabricated steel structures account for more than 50 per cent of all buildings, he said. "But now in China, steel structures account for less than 5 per cent of all buildings, compared with developed countries, there is a huge future market".
For Hangxiao steel structure, focus on steel structure building is also for the improvement of their own performance. In the six months to August 22, hangxiao steel's 2013 performance was judged by two institutions, but the forecast was a year-on-year increase of -53.85 per cent, according to a survey by the Flusher Data Centre. In this regard, there is a point of view that once the market demand for steel structure housing is further opened, and has been recognized by the market, it may enhance the performance of Hangxiao Steel structure.
"Purely from a static figure point of view, the survival situation of Chinese steel enterprises will be greatly improved." "At present, foreign construction steel accounts for 10 to 30 percent of steel production," Yuan Zhibin said in a media analysis. "In 2012, China produced 730 million tons of steel. If China can increase the proportion of steel used in construction to 10 percent, this figure will also reach 73 million tons, with a gap of nearly 43 million tons between the amount of steel used in construction without rebar and almost the same as China's steel surplus in 2012."
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