The hottest iron fist cleaning up the steel indust

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It is learned from authoritative channels that as an important part of the supply side reform, the state is brewing to deal with overcapacity, will speed up the establishment of a more effective exit mechanism, and use market-oriented means to further resolve overcapacity. Various signs show that the steel industry bears the brunt of the country's efforts to curb overcapacity

however, although the state has frequently regulated overcapacity in the steel industry in the past decade, little has been achieved. The domestic steel industry is facing the dual pressure of high production capacity and low demand. The risk of overcapacity is accumulating, and the whole industry is facing an unprecedented failure. The main reason is that its tool wear is very rapid, and the tide of production reorganization

the country will fight with an iron fist to clean up overcapacity

learned from authorities that resolving overcapacity in some industries has become an important task of ⑤ reliability technology. With the increasing expansion of the field of instrumentation and measurement and control system utilization, adjusting the industrial structure is an important task. The country is brewing to speed up the resolution of overcapacity problems. The national development and Reform Commission, the Ministry of industry and information technology and other ministries and commissions are actively investigating this and formulating relevant opinions. "This is one of the important tasks of the central 'heavy fist' governance this year, involving industries with overcapacity such as steel, electrolytic aluminum, cement and shipbuilding." The person said

steel manufacturing and production

the above-mentioned person told that the relevant departments have conducted a long-term investigation. On the basis of the current industrial policies and regulations, the next step will be to strictly control new projects in industries with overcapacity, and will also severely rectify illegal construction projects. On the other hand, we should raise the industry threshold through energy consumption indicators, environmental protection verification standards, bank credit, accountability and other means to achieve the survival of the fittest by market-oriented means, so as to prevent the further deterioration of overcapacity. It is worth noting that since these surplus industries are concentrated in basic manufacturing, involving local investment and employment, the country will consider establishing and improving a more effective exit mechanism in the next step

Feng Fei, Vice Minister of the Ministry of industry and information technology of China, said recently that the implementation plan for the transformation and upgrading of traditional industries is being formulated. The iron and steel industry is an absolute surplus industry, and those who can exit should speed up the "market clearing". Feng Fei said that at present, the problem of serious overcapacity in some traditional manufacturing industries has become more prominent, especially in steel, cement, flat glass, electrolytic aluminum, shipbuilding and other industries, where there is a serious overcapacity and oversupply

Feng Fei believes that the problem of steel overcapacity is relatively prominent, and it is an absolute excess, but also has structural problems. The problem faced by the steel industry is how to resolve the contradiction of overcapacity. The biggest difficulty faced by the traditional manufacturing industry is that the problem of serious overcapacity is further highlighted; Second, the problem of enterprise profits; Third, the ability of enterprise innovation and transformation is insufficient. During the 12th Five Year Plan period, China achieved remarkable results in eliminating backward production capacity, mainly in 19 industries such as steel, non-ferrous metals, building materials, light industry, textiles, food, etc. It not only completed the set goals of the 12th Five year plan one year ahead of schedule, but also completed additional goals. However, the problem of overcapacity still exists

the crisis industry suffered a huge loss of 10 billion yuan

although WISCO Group officially denied the list of 6169 layoffs, it is an indisputable fact that the steel industry stopped production on a large scale. Statistics show that from the end of last year to December this year, China's steel production capacity reached 64.35 million tons

"this is unprecedented." Wang Lei, an iron and steel industry practitioner, said that in his memory, even in the 2008 financial crisis, there was no such large-scale shutdown. The fact in front of us is that not only the sales are not smooth, but the steel price has fallen very seriously, which has far exceeded the scope of the cost "red line" of the steel plant, and the continuous deterioration of business has brought widespread losses to the steel industry. Nowadays, the tide of shutdown of steel enterprises has lasted for a year, and the scale of shutdown is getting larger and larger

since October, Fujian No.3 Steel Co., Ltd., Xuanhua Steel Co., Ltd., Chengdu Chongqing Vanadium Titanium Co., Ltd., Baotou Steel Co., Ltd., Shougang Changzhi, Xinfu Steel and other steel plants have successively stopped production in disguised form by means of production line maintenance. However, many iron and steel enterprises in Tangshan, Hebei province directly shut down their blast furnaces. On November 14, Tangshan Songting steel plant announced its shutdown, becoming the second steel plant with a shutdown of more than 5million tons after Shanxi Haixin

near the end of the year, like many insiders who have been struggling in the steel industry for decades, Wang Lei is not optimistic about the prospects of the steel industry next year. With the end of the "golden decade" of China's steel industry, China's steel industry has entered a "cold winter", with declining steel consumption, prominent contradiction between supply and demand, fierce vicious competition, falling prices, and serious industry losses

"the loss of nearly 200 yuan per ton of steel, steel mills are competing to reduce prices, and the situation is getting worse." He frankly said that because of the pessimism towards the later market, on the one hand, steel mills are desperately trying to reduce inventory, on the other hand, they are also selling goods through price competition. Although iron ore and other raw materials have repeatedly hit new lows this year, they have not turned the enterprise into a profit, and the plight of the steel industry continues to ferment

the latest data shows that among the large and medium-sized iron and steel enterprises included in the statistics of the Steel Association, from January to October, the large and medium-sized iron and steel enterprises accumulated a loss of 38.638 billion yuan, of which the main business loss was 7. When the gap between the left and right of the connecting parts was greater than 0.5mm, 2 billion yuan. Among the 101 large and medium-sized iron and steel enterprises, 48 suffered losses, the loss area expanded to 47.5%, and the average sales profit margin was -1.5%

it is worrying that due to the continuous weakness of the market, the funds of steel enterprises and users are in a tight state, so it is difficult to withdraw the sales payment, especially the low proportion of cash in the withdrawal of payment, and steel enterprises are generally facing a state of financial tension. As the debt ratio continues to rise, the debt risk becomes more and more significant

"such a huge loss and continued high production will inevitably lead to disastrous consequences, which will not only lead to huge risks in the steel industry, but also bring risks to other related industries." Said Li Xinchuang, Deputy Secretary General of CISA

countermeasures reform, strict approval methods, market access

the fact before us is that despite the government's heavy blows, the regulation of overcapacity in the steel industry in the past decade has achieved little. According to the internal data obtained by the economic information daily from several associations, taking the steel industry as an example, the production capacity was nearly 300 million tons in 2003 and exceeded 1 billion tons in 2012. According to incomplete statistics, the current steel production capacity has been close to 1.2 billion tons. On the other hand, the global demand is sluggish. The latest research of China Metallurgical Industry Planning Institute shows that the actual consumption of steel in China is predicted to be 668 million tons in 2015, a year-on-year decrease of 4%. The actual consumption of steel in China is predicted to be 648 million tons in 2016, a year-on-year decrease of 20million tons, a year-on-year decrease of 3%

"the way of centralized approval and control of competition has been difficult to curb overcapacity." An industry expert said to him that he must see that at present, industries with overcapacity such as steel are often the pillar enterprises of local government finance, involving local fiscal revenue, employment, economic stability and other issues. On the other hand, the current overcapacity is not only backward capacity, but also a large number of advanced capacity generated by structural disorderly development. These are the key problems that cannot be fundamentally solved by the current overcapacity policy regulation

many experts believe that the top priority to resolve the contradiction is to strictly enforce market access and promote production. According to the purpose of the experimental machine, the experimental machine can be divided into two categories: industrial policy, fiscal policy, land policy and environmental protection policy. The disorderly expansion of production capacity can be strictly controlled, the elimination of backward production capacity can be accelerated, the existing production capacity can be compressed, the development of enterprises can be promoted, and the industrial concentration can be improved. But in the long run, in order to solve this problem, we should change the management mode relying on administrative examination and approval as soon as possible, and turn to more actively promote the improvement of market mechanism and reduce government intervention

Xu Xiangchun, my iron and steel Consulting Director, said in an interview with the economic information daily that the deep-seated problem is that with the gradual transformation of China's economic structure, the economic growth mode previously driven by basic investment has changed towards innovation and technology, and basic industries such as iron and steel must also be adjusted accordingly. However, in fact, the overcapacity in the iron and steel industry has not been alleviated at present, The unreasonable industrial structure has not changed, which has caused the embarrassing situation that the steel industry has been struggling on the edge of loss. From the current external environment faced by steel enterprises, the demand for steel is close to saturation. With the decline in demand caused by economic restructuring and the pressure of banks not to renew loans, more steel mills may face the risk of capital fracture in the later stage. This also means that the reshuffle of the industry will be further strengthened, and it will also create more opportunities for mergers and acquisitions in the later stage of the steel industry

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