Steel to increase production capacity and stick to the bottom line

Recently, the National Development and Reform Commission announced the steel industry’s efforts to defuse excess production capacity and prevent the “special spot inspection” method of spot inspections. It also stated that the joint meeting of the iron and steel industry to reduce excess production capacity and develop development is scheduled to be held in May 2018. From the 22nd to the June 15th, 8 spot checks were organized to 21 provinces (autonomous regions and municipalities) to carry out the iron and steel industry’s overcapacity and to prevent spot checks of “Gibbon Steel”.

The data shows that from 2016 to 2017, the steel industry eliminated a total of over 120 million tons of excess production capacity, and centralizedly banned 140 million tons of “bars” production capacity. At the same time, the profits of the steel industry have risen sharply, and some localities and companies have been impulsive of new production capacity, and the resumption of the “Ground Strip” has repeatedly occurred.

“The backward production capacity is firmly eliminated. The reduction of the existing production capacity is the bottom line for the development of the steel industry.” Wang Jiangping, vice minister of the Ministry of Industry and Information Technology, said at the China International Steel Conference that steel production capacity must not be allowed to falsify and do not allow excess production capacity to resurrect. It is not allowed to engage in equal replacements and illegal construction of new steel projects is not allowed.

Xu Wenli, Director of the Iron and Steel Division of the Raw Materials Industry Department of the Ministry of Industry and Information Technology, said at the JIT+C2M Summit on the Road to the Powerful Country of Iron and Steel, that from May to June, the Department’s joint meeting will organize the prevention and control of the resumption of production capacity and “Gibbon Steel”. The purpose of the special spot checks is to eliminate the dangers of project and capacity expansion.

Wang Jiangping pointed out that the core difficulties of China’s steel industry are still structural problems. The shortage of low-end supply and the shortage of high-end supply coexist. Regional surpluses and regional shortages coexist. While actively resolving excess production capacity, it is also necessary to promote the high-quality development of China’s steel industry through quality changes, efficiency changes, and power reforms.

Chi Jingdong, vice president of the China Iron and Steel Industry Association, also stated that as the problem of serious overcapacity in steel production is basically solved, the structural contradiction of the steel industry itself is unbalanced, inadequate, uncoordinated, and unsustainable. Escalation escalation has increased.

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Post time: May-24-2018
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