On the 16th, the “Existing Conditions and Administrative Measures for Production and Management of Existing Steel Enterprises†publicly solicited opinions and suggestions on the last day. According to the reporter’s interview, the industry’s current ideas for the program have been recognized. It is believed that increasing the size of individual companies, increasing the degree of concentration, and eliminating backward production capacity are the general trend, but the “measures†are extremely difficult to operate and still require a Long-term implementation mechanism.
On December 9, the Ministry of Industry and Information Technology promulgated the above-mentioned “Measures†(draft for solicitation of opinions), which stipulates six aspects: product quality, environmental protection, comprehensive utilization of energy and resources, technology and equipment, production scale, safety, and health and social responsibility. In the face of steel companies set access conditions. Among them, "In terms of production scale, the 2008 steel mill production of 1 million tons or more of crude steel, special steel companies 500,000 tons and above," this access conditions are of concern. Once the "Measures" are implemented, it will inevitably cause great changes in the entire steel industry, and a large number of steel enterprises will be gradually eliminated. Because, according to industry insiders, there is roughly 100 million tons of domestic production capacity that does not meet this requirement. Steel enterprises under the scale of 1 million tons of production capacity account for about two-thirds of the total, and production capacity accounts for about one-fifth of China's total production capacity.
“In fact, we should not discuss too much excess capacity now. Instead, we should focus on solving the problem of eliminating backward production capacity. If we are to lag behind, can we still have excess capacity?†said a person in charge of a domestic steel research and planning agency with a government background. Indicated.
According to the latest research report released by Guosen Securities, China's crude steel production capacity was about 715 million tons at the end of 2009. If we do not consider the backward elimination, the crude steel production capacity will be about 750 million tons at the end of 2010, and the average annual production capacity will be about 732 million tons. Ton, the capacity utilization rate corresponding to the output of 651 million tons was 89%.
The Deputy Secretary-General of the China Iron and Steel Association, Qi Xiangdong, stated on December 12 that the market demand is characterized by periodicity and volatility. The phased surplus does not mean long-term surplus, the production capacity does not represent actual output, and the general equipment operating rate reaches 85% is normal.
“However, I think it is very necessary for the “Measures†to be issued. Despite the enormous difficulty of operation, such requirements must be raised to increase the pressure on various companies. I believe the competent authorities will consider a buffer period for implementation.†The head of the agency told reporters.
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