Description
SWOT ANALYSIS OF PANZHIHUA NEW STEEL AND VANADIUM

Panzhihua New Steel and Vanadium

Parent Company

Panzhihua Iron & Steel Co Ltd

Category

Iron & steel

Sector

Industrial products

Tagline/ Slogan

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Production capacity of approximately 7.5mn tons of crude steel & USP 11.5mn tons of iron ore concentrates

STP

Track beam products, hot rolled products, cold rolled products, steel tube products, building material products, special steel products, vanadium products and titanium products, as well as ore and iron ore Segment concentrates, among others

Metallurgy, petroleum, railway, chemical, military, construction, Target Group household appliances, and other fields

China's largest vanadium product manufacturer & the second largest in Positioning the world

SWOT Analysis

1. The company, through its subsidiaries, involves in the smelting, processing, and distribution of iron, steel, and vanadium products 2. Merger between panzhihua & Ansteel has given the company the second option to raise cash 3. Net profit margin & operating margin has increased showing its stability 4. It employs around 16,000+ employees Strength 5. Strong market position and strong brand reputation

1. Dependency on imported raw materials 2. Debt to EBITDA & EBIT/Interest, these ratios are slightly lower which Weakness is a concern

1. Being a developing country, Chinese govt will come up with Opportunity supportive policies

2. Try to improve synergies and networks with its affiliates 3. As the economies grows & the world come back from financial crisis there will be a huge demand for steel 4. Strategic alliance to improve market share & to maintain continuous supply of raw material

1. Fluctuations in the raw material prices 2. Waning demand dragging prices lower 3. Worsening of financial crisis in europe 4. There is growing usage of substitute products Threats 5. Threat from existing as well as new entrants

Competition

1. Baosteel group corporation 2. ArcelorMittal 3. Anshan Iron & Steel corporation Competitors 4. Hebei Iron & Steel



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