China's steel production capacity reached 900 million tons, the layout adjustment is in a dilemma
"To adjust, the new capacity will further aggravate overcapacity." Faced with the current overcapacity and profitability of the domestic steel industry, Li Zhongjuan, deputy director of the Industry Coordination Department of the National Development and Reform Commission, said that the adjustment of steel layout was in a dilemma.
Li made the above remarks at the third China Steel Planning Forum held on Saturday. She pointed out that the current overcapacity of China's steel production capacity has brought tremendous pressure. According to the data of the Metallurgical Industry Planning and Research Institute, as of the end of 2011, China's crude steel production capacity has reached 900 million tons. Of the 357 million tons of capacity that has been built since 2005, 79% have not been approved by the state.
"The production capacity of illegal construction has not been scientifically demonstrated, and there are some problems in scientific layout, product positioning, equipment, process flow, etc., which have increased the difficulty and cost of structural adjustment." Li Zhongjuan said.
As early as 2009, the Chinese government imposed strict controls on the steel industry for three years without new projects. In addition to the relocation of Shougang and the Wenchuan Earthquake Reconstruction Project, the construction of coastal steel bases such as Baosteel Zhanjiang, Wugang Fangchenggang, and the relocation of urban steel mills have not been implemented.
“The key structural adjustment projects determined by the plan cannot be implemented, leaving market space for blindly expanding production capacity.†Li Zhongjuan said that the adjustment of the industry layout is in a dilemma. If it is not adjusted, the contradiction between steel production capacity, resources and environment cannot be improved. It may lead to further increase in production capacity and increase over-capacity.
In addition, the merger and reorganization of the steel industry also faces many obstacles. At the end of 2011, China's top five steel companies accounted for 33.7% of the country's crude steel output, and the top ten accounted for 49%. According to the “Twelfth Five-Year Development Plan for the Iron and Steel Industry†of the Ministry of Industry and Information Technology, by 2015, the concentration of the top ten industries in the steel industry will increase to 60%. Compared with the average annual growth rate of concentration in the steel industry in recent years, it is quite challenging to increase 11 percentage points in 5 years.
Li Zhongjuan said that in the process of revitalization and adjustment planning, the living space of small and medium-sized steel enterprises has been improved, and the willingness to merge and reorganize is not strong, while large enterprises are subject to institutional restrictions such as profit and tax distribution and statistical attribution in the process of cross-regional restructuring, and face historical debts. , personnel placement, corporate development and other issues.
At present, the National Development and Reform Commission and the Ministry of Industry and Information Technology are actively promoting the structural adjustment of key areas and regional mergers and acquisitions. They have promoted the pilot work of structural adjustment in Shandong and initiated structural adjustment of key industrial areas such as Hebei.
Xu Wenli, deputy director of the Raw Materials Industry Department of the Ministry of Industry and Information Technology, said that he has drafted and completed the guidance on the merger and reorganization of designated steel companies, and promoted large-scale enterprises to carry out cross-regional mergers and acquisitions. It is actively promoting regional mergers and acquisitions programs in Hebei, Jiangsu, Shandong, Yunnan, and Jiangxi, and actively promotes the pilot work of steel structure adjustment in Shandong Province.
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