Industrial restructuring of the steel industry is imminent

This year's government work report pointed out that in the past five years, a total of 78 million tons of outdated steelmaking capacity has been eliminated. In the future, problems such as overcapacity will be resolved by optimizing resource allocation and industrial layout. The representative committee called for the implementation of measures to solve the problem of overcapacity. When will the steel industry be good? In 2012, China’s steel production was about 720 million tons, and the industry’s loss amounted to 28.924 billion yuan, a year-on-year increase of 7.39 times.

Li Yizhong, former member of the National Committee of the Chinese People's Political Consultative Conference and the Ministry of Industry and Information Technology, said that it is an indisputable fact that China's steel industry and some other industries have a serious surplus of production capacity. The government has not done enough in eliminating backward production capacity and measures have been inadequate. “When will the iron and steel industry do a good job? I will say when the steel industry is not going to be any better. The reason for this is the overcapacity, and there is still a lot of excess.” said Wang Yifang, chairman of Hebei Iron and Steel Group Co., Ltd. In 2012, China’s GDP totaled nearly 52 trillion yuan. The domestic market consumed 680 million tons of steel. The international market exported more than 40 million tons, but China’s steel production capacity is at least 900 million tons.

“The government work report pointed out that in the past five years, a total of 78 million tons of outdated steelmaking capacity will be eliminated. In the future, resource allocation and industrial layout will be optimized to solve the problem of excess production capacity.” Wang Yifang was deeply worried about this, “Although the 78 million tons of production capacity has been eliminated, However, the reality is to eliminate small and large ones. In the past five years, the steel industry has increased the production capacity by more than 200 million tons.” Resolving stocks to prevent new overcapacity Market analysis generally believes that China’s vigorous implementation of urbanization is in the midst of difficulties. For the steel industry in China, it will be a great news. While meeting the rigid demand released by China's deepening of the urbanization process, how to adjust the industrial structure and control overcapacity has become an important issue for the development of the steel industry in the future.

Li Yizhong believes that the most fundamental thing is to resolve stocks and keep the source in check, and we must not create new excess capacity. Zhang Qingwei, the representative of the National People's Government and the governor of Hebei Province, said: “The implementation of the adjustment of the steel industry is a very important matter for the government.” Zhang Qingwei said that Hebei will not distinguish between state-owned and private enterprises in the process of capacity adjustment, focusing on The market mechanism strongly supports steel enterprises with advanced technologies, welcomed markets, and energy-saving emission reduction measures in place. Sun Zhaohui, deputy director of the National Committee of the National Committee for the Comprehensive Utilization of Vanadium and Titanium Resources of the National Committee of the Chinese People's Political Consultative Conference and Panzhihua Iron and Steel Co., expressed the hope that the country will make full use of the forceful mechanism formed by the international financial crisis, strictly implement and standardize the production and development of iron and steel enterprises, eliminate obsolete production capacity, and accelerate the merger and reorganization of enterprises. Policies and measures to accelerate the resolution of excess capacity in the steel industry create a favorable environment for the sustainable and healthy development of the steel industry.