The hottest iron fist to clean up the steel indust

2022-07-27
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It is learned from authoritative sources that, as an important part of supply side reform, the state is planning to deal with overcapacity, accelerate the establishment of a more effective exit mechanism, and use market-based 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 the overcapacity of the steel industry in the past decade, little has been achieved. The domestic steel industry is facing the dual pressure of high capacity and low demand. The risk of overcapacity is accumulating, and the whole industry is facing an unprecedented wave of bankruptcy and reorganization

the country will have an iron fist to clean up overcapacity

it was learned from authorities that resolving overcapacity in some industries has become an important task in adjusting the industrial structure. The country is brewing to speed up the resolution of overcapacity. The national development and Reform Commission, the Ministry of industry and information technology and other ministries and commissions are actively investigating this issue and formulating relevant opinions. "This is one of the important tasks of the central government's' heavy fist 'governance this year, involving industries with excess capacity such as steel, electrolytic aluminum, cement and shipbuilding." These people said

steel manufacturing and production

the above-mentioned person told that relevant departments have conducted long-term research. On the basis of the current industrial policies and regulations, the next step will be to strictly control new projects in industries with excess capacity and severely punish illegal construction projects. On the other hand, the industry threshold is raised through energy consumption indicators, environmental protection verification standards, bank credit, accountability, etc., and the survival of the fittest is achieved through 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

Fengfei, Vice Minister of the Ministry of industry and information technology of China, recently said that a separate 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 the situation of serious overcapacity and oversupply is severe

Feng Fei believes that the problem of iron and steel overcapacity is quite prominent, and it is an absolute excess. At the same time, it also has structural problems. The problem faced by the steel industry is how to resolve the contradiction of overcapacity. The biggest difficulties faced by the traditional manufacturing industry are: first, the problem of serious overcapacity has become more prominent; Second, the problem of enterprise profit; Third, the enterprise lacks the ability of innovation and transformation. 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 and food. It not only completed the goals set in 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 has never been experienced before." 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 before us is that not only the sales are not smooth, but the steel price has fallen very seriously, which has far exceeded the scope that the steel plant cost "red line" can bear. The continuous deterioration of operation has brought widespread losses to the steel industry. Nowadays, the trend of shutdown of easy surface printing, coating and plating treatment industries of iron and steel enterprises has lasted for one 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 Steel Co., Ltd., Xinfu Steel Co., Ltd. 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 area of Hebei province directly shut down their blast furnaces. On November 14, Tangshan Songting iron and steel plant announced that it would stop production, becoming the second steel plant to stop production of more than 5million tons after Shanxi Haixin

near the end of the year, like many people in the iron and steel industry who have been struggling for decades, Wang Lei is not optimistic about the prospect of the iron and steel industry next year. With the end of the "golden decade" of China's iron and steel industry, China's iron and steel industry has entered a "cold winter", with declining steel consumption, prominent contradiction between supply and demand, fierce vicious competition. 3. Pay attention to dust prevention, and take dust prevention measures after consulting professionals Prices fell and the industry suffered serious losses

"the loss per ton of steel is nearly 200 yuan, and steel mills are scrambling 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, the 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 from loss to profit, and the plight of the steel industry continues to ferment

the latest data show that among the large and medium-sized iron and steel enterprises included in the statistics of CISA, 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 72 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 continued weakness of the market, steel enterprises and President Xi spoke highly of the important role played by the African Union in Africa's development, 1 integration process and international and regional affairs in their congratulatory messages. User funds are in a tight state. It is difficult to withdraw sales loans, especially the low proportion of cash returned from loans. Steel enterprises are generally faced with 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 certainly lead to disastrous consequences, which will not only lead to huge risks in the iron and steel industry, but also bring risks to other related industries." Said lixinchuang, Deputy Secretary General of CISA

the reform of the examination and approval method for countermeasures and strict 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 iron and 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 iron and steel production capacity is close to 1.2 billion tons. On the other hand, the global demand is sluggish. According to the latest research by China Metallurgical Industry Planning Institute, it is predicted that the actual steel consumption in China will be 668million tons in 2015, a year-on-year decrease of 4%. It is predicted that the actual steel consumption in China will be 648million tons in 2016, a year-on-year decrease of 20million tons, a year-on-year decrease of 3%

"it is difficult to curb overcapacity by means of centralized approval and control of competition." An industry expert said to him that he must see that at present, industries with excess capacity such as steel are often the financial pillar enterprises of local governments, involving local fiscal revenue, employment, economic stability and other issues. On the other hand, the current excess capacity 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 policy regulation of excess capacity

many experts believe that the urgent task to resolve the contradiction is to strictly enforce market access, promote the linkage of industrial policy, fiscal policy, land policy and environmental protection policy, strictly control the disorderly expansion of production capacity, speed up the elimination of backward production capacity, compress existing production capacity, promote enterprise development and improve industrial concentration. 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 promoting the improvement of market mechanism and reducing government intervention

in an interview with the economic information daily, xuxiangchun, my iron and steel Consulting Director, said that the deep-seated problem is that with the gradual transformation of China's economic structure, the economic growth mode previously relying on basic investment is changing towards innovation and science and technology, and basic industries such as iron and steel must be adjusted accordingly. In fact, the overcapacity in the iron and steel industry has not been alleviated, The unreasonable industrial structure has not changed, which has caused the embarrassing situation that the iron and steel industry has been struggling on the edge of loss. From the current external environment faced by steel enterprises, the demand for steel has been tested, modified and improved through practice, and the theory is close to saturation. With the decline in demand caused by economic structure adjustment and the pressure of banks not renewing loans, more steel mills may face the risk of capital disruption in the later stage. This also means that the industry reshuffle will be further strengthened, and it will also create more opportunities for the later merger and reorganization of the steel industry

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