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China's steel industry is caught in the cycle of over-removing
On the one hand, the state's control policies have been introduced frequently, and the elimination of backward production capacity has been intensified. On the other hand, steel companies have reorganized and built new projects by eliminating the backward production capacity, and the production capacity has been expanded several times. When will the situation of China's steel production capacity “eliminate and surpass the surplus” be broken?
As early as 2006, the National Development and Reform Commission issued a request to eliminate all small blast furnaces below 200 cubic meters in 2006. In 2007, small blast furnaces under 300 cubic meters and converters of 20 tons and below were eliminated. On June 17, last year, the General Office of the State Council issued the "Several Opinions on Further Strengthening Energy Conservation and Emission Reduction to Accelerate the Structural Adjustment of the Iron and Steel Industry" and proposed that "except for projects approved by the state to carry out preliminary work, it will not be approved until the end of 2011. Record any steel project that expands production capacity."
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The just-concluded two national conferences have determined that the focus of China's economic work in 2011 will fall on the way of transforming economic development. The steel industry should further accelerate structural adjustment and curb overcapacity by eliminating backwardness, optimizing industrial layout, and accelerating mergers and acquisitions.
In recent years, many people in the industry have lamented that the backwardness of the steel industry has been going on, but the more the production capacity is eliminated. So why? Why can't the country's regulatory policies be implemented in the local area?
Song Jijun, vice president of Hebei Metallurgical Industry Association, believes that there are more and more backward steel production capacity, which has a great relationship with market demand. From the perspective of China's national conditions, the urbanization process is intensifying, and large infrastructure projects are frequently launched. The demand is very large, especially for the demand for construction-type crude steel products. There is demand in the market. It is precisely the pursuit of interests that steel companies will commit crimes. When the state demands the elimination of small blast furnaces, these enterprises will change and expand the blast furnace in disguise. As a result, the production capacity has not been reduced, and the repeated construction and overcapacity have become more and more serious.
Xu Zhongbo, a professor at the School of Metallurgy at Beijing University of Science and Technology, discovered in a survey in Shanxi that in some poverty-stricken areas, iron and steel enterprises are big taxpayers, and the local government has passively coped with and even secretly supported steel enterprises when implementing backward production capacity.
In the opinion of many steel industry experts, China's steel industry is caught in the “weird circle” of over-removal and has a great relationship with the negative response of local governments.
In fact, steel companies have almost formed a consensus: "Unapproved first build", Xu Zhong wave allows such steel "black households" to be like the rural super-life guerrillas, and whoever is honest will suffer.
Take Wu'an, after all, the steel industry is still an important support for local GDP and employment. The contribution of steel enterprises to Wu'an's GDP is as high as 70%. Only the steel industry's main employees account for 10% of the local population. "Promoting growth and ensuring employment" is always a sword of local government.
Turning off the enterprise or implementing the state regulation policy is undoubtedly a dilemma for local governments.
For a series of problems in the process of eliminating backward steel production capacity, Zhao Xia, chairman of Baosteel Group's Bayi Steel Co., told reporters that Bayi Steel hopes to replace other products of other backward small steel enterprises in Xinjiang in the future, and accelerate the development of Bayi Steel. Eliminate backwardness in the region. He believes that companies that build high-quality steel projects should also shoulder some of the responsibility to help local areas eliminate backward production capacity.
The term "system" is used to adjust the orientation