Iron and steel industry overcapacity will continue for how long

In 2014 May held in Paris France organization for economic cooperation and development (OECD) meeting of the Council of ministers, OECD steel Committee discussed the problem of excess steel production capacity, and plans in the next few years to further development work. In addition to monitoring the development of iron and steel production capacity, the OECD plan of government policy and the influence of iron and steel Committee on the global iron and steel production capacity surplus, play a role to promote consensus, the global steel industry more efficient and to avoid affecting the normal steel trade market in the promotion of better.

Analysts said, according to incomplete statistics, at present, China's crude steel production capacity in excess of 2 tons, "along the way" to promote the steel to go out, outside the factory to ease domestic overcapacity situation, can also use the advantages of mineral resources in some areas of foreign, reduce cost. On the other hand, "along the way" also can promote the transfer of production, strengthen with Asia, Europe and other countries, Africa cooperation, promote the export of steel, in order to ease the contradiction between supply and demand in china. With the steadily along the way strategy, will drive and the surrounding Xinjiang bordering 6 countries about 18000000 tons of building materials demand.

Along the way will be part of China's "iron and steel production capacity surplus sharing, but it is still a long-term strategy. If you want to use 'development strategy along the way' to China steel based overseas, first of all need to enhance their production capacity, to achieve the high-end product. "Analysts said steel demand slowdown, the inevitable trend of development of post industrial era, with the adjustment of industrial structure in China, the steel industry growth in the limited space. Steel prices in China are from production to production of services, it will become China's steel city, growth point.

Chinese government in recent years to increase the iron and steel industry, eliminate backward production capacity efforts, the Ministry of industry and information technology said today, in the past six years has eliminated 90000000 tons and backward steel production capacity. But the experts also said, now 1000000 tons and below the backward production capacity in Shangdi 1.7 tons of steel, still left facing elimination.

Xin Renzhou of vice director of Department of the Ministry of industry and information technology industry policy in 2015 revealed China steel Planning Forum in March 30th, from 2010 -2014 years, the total elimination of iron production capacity of 1.2 tons China, elimination of steel production capacity of 90000000 tons, to some extent alleviate the domestic overcapacity contradiction.

"Especially in 2014 eliminated 31000000 tons of backward production capacity, not only ahead of the completion of the twelfth five year plan, also completed the additional out of the task," said Xin Renzhou. According to the survey prior to the Ministry of industry, by the end of 2013, domestic 400 m3 blast furnace capacity ratio has dropped to 4.7%, 30 tons of production capacity accounted for only 0.9% of transcription. "Can be basically eliminated has been eliminated, the rest is not eliminated," Xin Renzhou said.

From a market perspective, in Zhao Xizi's view, China steel production began to decline in 2018, at the same time per capita 500 kilograms of steel output will drop to between, 6.5 tons to 7 tons, according to the new requirements of environmental law standard, the private iron and steel enterprises to increase the cost per ton 80-100 yuan, which is the biggest threat to survival about 1000000 tons, especially below 1000000 tons of enterprises (excluding special steel).

From a policy perspective, Xin Renzhou said, will be leveraging the next step of reform, continue through the environmental tax and other tax measures, the difference between the price of water, electricity, more use of sewage charges price means, give full play to the role of market mechanism, increase efforts to eliminate backward production capacity.