To the capacity as a central strategy for a firm consistent. In February, the State Council document on the 6th to raise steel production target: five years to resolve the overcapacity of steel 100 000 000 -1.5 one hundred million tons; in April this year, the Ministry of Finance to resolve the overcapacity in the steel coal supporting documents for five years, 100 billion yuan to resolve the allocation and use of coal production capacity of steel matching funds, to make specific provisions.
However, in this country from top to bottom to iron and steel production capacity in the trend, but there has been very uncoordinated steel complex production boom. In April, average daily production of domestic steel actually reached a record high. At the same time, since February, the weekly number of blast furnace operating rate and volume utilization rate throughout the country, has been showing the chain increased; long rebar futures prices rose, but also once people “amazing.”
It is reported that a number of steel prices has been discontinued after entering gradually resume production this year, it is to make decisions based on market conditions. To May, the momentum on the resumption of production is still rising. Agency statistics 242 steel companies the number of blast furnace capacity utilization rate of 84.23%, weekly chain increased 0.66 percentage points. At the same time, the resumption of production within a week again blast furnace 6, wherein 5 to resume production after a longer shutdown, the remaining part of Block 1 to resume production after maintenance.
To resume production capacity and the influx of simultaneous presentation, public opinions.
The author believes that the steel industry complex production flows and rising prices for regardless of what for, do not meet the laws of the market, it is difficult for a long time.
First, the global economy, the steel industry oversupply situation will not change.
China’s current crude steel capacity of about 12 million tonnes, crude steel production in the country in 2015 was 8.04 million tons, the industry capacity utilization is less than 67%. Called the tragic annual steel prices fell the most, run iron and steel enterprises are “loss leader”, into a situation of comprehensive loss. Therefore, whether the resumption of production surges or price rise, can only be a temporary phenomenon. After entering in March to coincide with the season, started the construction of large-scale project, rebar futures prices brought a strong stimulation in market sentiment and fundamentals of supply and demand together, steel production and the price of natural increase. But in the overall situation of oversupply, this situation will not last long. Especially the backward production capacity, will be eliminated in the column.
Secondly, the steel industry is not conducive to the resumption of production and environmental protection.
April 28, Ministry of Environmental Protection to restart the interviews, the object is in Changzhi City, Shanxi Province, Anqing City, Anhui Province, Jining City, Shandong Province, Shangqiu City, Henan Province, Xianyang City, Shaanxi Province, five municipal governments, because the interviews in 2016 a quarter, a significant deterioration of air quality in these areas, the main pollutant concentrations in the atmosphere rise, not fall, and iron and steel enterprises to resume production closely associated. Steel largest province of Hebei to say nothing of. May 3, the ministry informed the first to accept the Inspector’s Hebei result, environmental pollution is less optimistic. It is certain that the future of the backward production capacity, pollution, environmental protection departments will not sit idly by.
For this reason, I appeal to the healthy development of China’s steel industry, “both gold and silver mines, but also to Guanghui”, the government and steel enterprises should work together to shoulder their social responsibilities.
As governments at all levels steelmakers location, should be firmly put center five years to resolve the overcapacity in the steel target into effect 100 million -1.5 million tons, which means six in iron and steel enterprises to be closed, integration. Able to fulfill the task to resolve, simply pure pursuit of GDP, local governments, “number one” should be accountable. At the same time, make good use of the central special funds, and effectively settle the capacity to re-employment and enterprise debt deal with laid-off workers, it is government social responsibility.
As the steel industry, do “Do not be clouds block our sight,” Do not be in front of the iron and steel industry, “revival” scene carried away. Pay close attention to the elimination of backward production capacity, seek vitality is crucial in transforming themselves in quality and efficiency. This is much more important than the temporary “multi-up money money.”