China's steel industry will phase out 27 million tons of capacity during the year

Abstract Yesterday (May 18), at the 8th China International Iron and Steel Conference, we learned a set of data: China's steel capacity utilization rate is below 76%, and excess capacity is between 180 million and 240 million tons. Su Bo, deputy minister of the Ministry of Industry and Information Technology, said that this year’s prospects for China...
The reporter learned yesterday (May 18) at the 8th China International Iron and Steel Conference that a set of data: China's steel capacity utilization rate is below 76%, and excess capacity is between 180 million and 240 million tons. Su Bo, deputy minister of the Ministry of Industry and Information Technology, said that China’s expected goal this year is to eliminate 27 million tons of backward steel. The plan of the State Council Premier Li Keqiang also mentioned in the government work report on March 5. It is worth noting that after the prospect of China's reform and economic development, Liu Shijin, deputy director of the Development Research Center of the State Council, believes that the Chinese steel industry has the conditions to become an industry with long-term stable international competitiveness and will enter an accelerated period of mergers and acquisitions.

Elimination of backward production capacity of 27 million tons

According to the data disclosed by Xu Lejiang, president of China Iron and Steel Association and chairman of Baosteel Group Co., Ltd. at yesterday's meeting, compared with 2011, the steel and steel sales settlement price of China Steel Association members decreased by 1026 yuan per ton, mainly due to production capacity. Excess, as well as low industrial concentration, iron ore supply and demand and price imbalance, as well as national energy conservation and emission reduction, green development requires enterprises to have problems in the development of ideas and strategies.

Zhang Zhixiang, chairman of Beijing Jianlong Heavy Industry Group Co., Ltd., pointed out that according to the design capacity, the current capacity utilization rate in China is below 76%, and the excess capacity is between 180 million and 240 million tons. In terms of variety structure, plate, Hot rolled wide strip steel, stainless steel and seamless steel tubes are all in a state of severe excess.

Su Bo said at the meeting yesterday that it is imperative to strictly control the new capacity of the steel industry and eliminate backward production capacity, which is an important measure to resolve overcapacity.

"Since 2010, China has eliminated 85 million tons of excess ironmaking capacity and 57 million tons of steelmaking." Su Bo pointed out that the expected goal this year is to eliminate 27 million tons of backward steel capacity, and ensure that the "Twelfth Five-Year Plan" is completed one year ahead of schedule. The task of eliminating backward production capacity. At the same time, it is hoped that from 2013 to the end of 2017, the capacity of compressed steel will be more than 80 million tons, so that the capacity utilization rate will reach a reasonable level.

Entering the merger and reorganization acceleration period

At yesterday's meeting, after looking at China's reform and economic development, Liu Shijin believed that China's steel industry has the conditions to become an industry with long-term stable international competitiveness, and will enter an accelerated period of mergers and acquisitions.

The reporter learned at the scene that Liu Shijin pointed out that in view of the historical peak demand of the steel industry, unlike the previous stage of overcapacity, China's steel industry is facing pressures and challenges in environmental protection and technological progress. The era of large-scale quantitative expansion has passed and will enter an institutional adjustment period characterized by mergers and acquisitions.

At the same time, he stressed that the market must play a decisive role in steel mergers and acquisitions.

"Reforming the market access system in accordance with the negative list principle and establishing a unified, open and competitive market system is the basis for the market to play a decisive role." Liu Shijin believes that on this basis, according to the standards of energy conservation, environmental protection and safety, Competition promotes the restructuring of industries with severe overcapacity.

Calcium Chloride

Calcium Chloride,Calcium Chloride Food Grade,Calcium Chloride Desiccant,Calcium Chloride In Concrete

Shaanxi United Xingchuang International Co., Ltd. , http://www.lxcgj.com