Study On The Safety Of China’s Iron And Steel Industry Based On The Theory Of Industrial Chain

Steel is the basic material of a country’s economy, the iron and steel industry chain safetyrelated to the global economy of a country’s strategic security. Since1996China’sfirst breakthrough million tons of annual steel production, China has become the world’slargest steel producing country. But at the same time, China’s iron and steel industry has alsoushered in the challenge and the pressures at home and abroad. At present, high prices ofChina’s steel industry chain upstream raw material increased the cost of production in iron andsteel industry. The steel industry chain downstream of weakening demand in construction andmanufacturing increase the difficulty of our country’s steel sales. Therefore, the profit marginsof steel industry in our country is shrinking, the industry’s security is suffering severe threat.Under such a background, based on the industrial chain theory research on the safety of theiron and steel industry in China has important significance.This article embarks from the basic theory, after the overview of the industry security,industrial chain, and the theory of China’s iron and steel industry chain, respectively analyzedthe present situation of the steel industry chain’s upstream and downstream, at the same timeinvestigate the influence of the steel of our country safe. Second, in order to intuitively reflectthe security of the iron and steel industry in China, after the analysis of the current situation ofthe iron and steel industry in China, this paper established a series of indexes, use SPSSsoftware and factor analysis method to investigate the safety of our country iron and steelindustry in1995-2012, then make evaluation, it is concluded that the safety level of theindustry at present. Finally, the overall safety of our country iron and steel industry chain isanalyzed.Through theoretical and empirical analysis the following conclusions: First, China’s steelindustry chain upstream in iron ore prices are too high, industry in critical condition. Second,the iron and steel industry itself due to backward technology level and poor product quality, isexperiencing transition phase of unsafe to security. Third, under the influence of slowing theprogress of the construction industry and backward manufacturing capacity for independentinnovation, China’s iron and steel industry chain downstream is in a secondary safety period.In short, China’s steel industry chain as a whole is in a dangerous phase. Finally, the paper puts forward some proposals to improve the safety of China’s iron andsteel industry chain.