To cope with the difficulties of the steel industry to resolve overcapacity needs to play a combination of policy punches
According to meteorological data from the Ministry of Environmental Protection, from January to October this year, the number of haze days in the country was as high as 29.9 days, an increase of 10.3 days compared to the same period last year, reaching the highest in 52 years, and Beijing, Tianjin, and Hebei have become the worst hit areas. Rare large areas of haze, so that environmental protection and energy-saving emission reduction has once again become a topic of focus. A "cracking" triggered by the industrial restructuring "tough battle" has been started.
It is estimated that China's crude steel production in 2013 will be 780 million tons, and in 2014 it will reach 810 million tons, an increase of 3.8% from the same period of last year. It is predicted that the actual consumption of steel in China in 2013 will be 693 million tons, and the actual consumption in 2014 will be 715 million tons, an increase of 3.2% year-on-year. In terms of raw material demand, the demand for iron ore in 2013 was about 1.138 billion tons, which increased slightly to 1.172 billion tons in 2014. However, the iron ore import volume is still huge, reaching 850 million tons.
On December 23, 2013, the China New Zealand Office held a press conference to comprehensively deepen reforms and accelerate the development of new-type industrialization. Miao Wei, Minister of Industry and Information Technology, said in response to a reporter’s question that excess capacity is a universal economic phenomenon. Under market economy conditions, a modest overcapacity is conducive to the realization of competition, and can also be adjusted through market mechanisms.
In October this year, the State Council issued the "Guiding Opinions on Resolving the Contradiction of Severe Overcapacity," and proposed to encourage local governments to raise standards for eliminating backward production capacity and accelerate the elimination of backward production capacity. However, many people in the industry believe that the oversupply of the steel industry is unlikely to significantly improve. The relevant person in charge of the China Iron and Steel Association pointed out that in view of the hardships of the iron and steel industry, the low industrial concentration, relative overcapacity, and outstanding energy and environmental protection issues will continue to exist in the next year. The effect of the national macro-control will be difficult to complete within two or three years. appear.
Although the government has been trying to ease the excess capacity of the steel industry by eliminating backward production capacity, the difficulties and bottlenecks encountered in the development of the steel industry are the contradictions accumulated during rapid development. It is not a matter of short-term regulation that can be effective, and environmental protection will not be implemented overnight. Things. At the end of the year, due to financial pressure and the lack of optimism about the market, it was not possible to centralize the Dongcun, so the current social inventory has been reduced but the inventory in the steel mills has continued to increase. Moreover, traders' operations have become cautious, and downstream purchases have weakened. The weak performance of finished materials, coupled with bad news, the spot market sentiment is also very low.
To resolve excess production capacity, it is necessary to create a policy portfolio. The Ministry of Industry and Information Technology also proposed that the next step will be to promote the merger and reorganization of steel companies. This is a powerful means to effectively control the steel production capacity, because the main means to solve the excess capacity of the steel industry in the future still depends on mergers and reorganizations, market forces and other means to complete. In the next few years, if the country's series of production restriction measures can be truly implemented, steel production capacity will gradually be controlled.
It is estimated that China's crude steel production in 2013 will be 780 million tons, and in 2014 it will reach 810 million tons, an increase of 3.8% from the same period of last year. It is predicted that the actual consumption of steel in China in 2013 will be 693 million tons, and the actual consumption in 2014 will be 715 million tons, an increase of 3.2% year-on-year. In terms of raw material demand, the demand for iron ore in 2013 was about 1.138 billion tons, which increased slightly to 1.172 billion tons in 2014. However, the iron ore import volume is still huge, reaching 850 million tons.
On December 23, 2013, the China New Zealand Office held a press conference to comprehensively deepen reforms and accelerate the development of new-type industrialization. Miao Wei, Minister of Industry and Information Technology, said in response to a reporter’s question that excess capacity is a universal economic phenomenon. Under market economy conditions, a modest overcapacity is conducive to the realization of competition, and can also be adjusted through market mechanisms.
In October this year, the State Council issued the "Guiding Opinions on Resolving the Contradiction of Severe Overcapacity," and proposed to encourage local governments to raise standards for eliminating backward production capacity and accelerate the elimination of backward production capacity. However, many people in the industry believe that the oversupply of the steel industry is unlikely to significantly improve. The relevant person in charge of the China Iron and Steel Association pointed out that in view of the hardships of the iron and steel industry, the low industrial concentration, relative overcapacity, and outstanding energy and environmental protection issues will continue to exist in the next year. The effect of the national macro-control will be difficult to complete within two or three years. appear.
Although the government has been trying to ease the excess capacity of the steel industry by eliminating backward production capacity, the difficulties and bottlenecks encountered in the development of the steel industry are the contradictions accumulated during rapid development. It is not a matter of short-term regulation that can be effective, and environmental protection will not be implemented overnight. Things. At the end of the year, due to financial pressure and the lack of optimism about the market, it was not possible to centralize the Dongcun, so the current social inventory has been reduced but the inventory in the steel mills has continued to increase. Moreover, traders' operations have become cautious, and downstream purchases have weakened. The weak performance of finished materials, coupled with bad news, the spot market sentiment is also very low.
To resolve excess production capacity, it is necessary to create a policy portfolio. The Ministry of Industry and Information Technology also proposed that the next step will be to promote the merger and reorganization of steel companies. This is a powerful means to effectively control the steel production capacity, because the main means to solve the excess capacity of the steel industry in the future still depends on mergers and reorganizations, market forces and other means to complete. In the next few years, if the country's series of production restriction measures can be truly implemented, steel production capacity will gradually be controlled.
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