Gains and losses of the most popular steel to redu

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Gains and losses of steel capacity reduction yes, "ground steel" has simply and rudely "resurged". Medium frequency furnaces in several provinces have been secretly opened and operated overnight. The temptation is fatal. The biggest temptation of "ditiao steel" is huge profits, and the steel enterprises that are mercenary will secretly produce it even if they fight hard

however, do you want to resume production? no way! The inspection team of the State Council came at the sound, and the recheck and acceptance action came again after the "ground bar" was completely banned. On July 16, the State Council sent 18 inspection teams to 18 provinces and cities to recheck enterprises that "if the conditions of the place where they are used permit, it is strongly recommended to add stabilized voltage power bars" to ensure that there is no "resurgence"

the "ground steel" that has grown savagely in the cracks for decades has been given an ultimatum this year - to be completely eliminated in China by June 30. Live up to expectations, officials said that 120 million tons of "ground bars" were basically cleaned up during the deadline on June 30

the State Council recently dispatched an inspection team for the fourth time, which went to 18 provinces including Tianjin, Inner Mongolia and Hubei to conduct on-the-spot inspection and conduct a comprehensive benchmarking, verification and investigation

in contrast, the government has put forward higher requirements for capacity reduction. For example, in the 13th five year plan for the steel industry released last November, the expression of capacity reduction has been changed from "reduction" to "net reduction" in GF No. 6 document; The meeting of the political opening bureau held on December 9 last year proposed that there should be "substantial" progress in capacity reduction. It can be said that the requirements are quite clear

the effect of capacity reduction was immediate in the first half of the year. According to the national development and Reform Commission, as of June 30, more than 600 "ground steel" enterprises with a production capacity of 120 million tons had been banned across the country, and all the enterprises involved had stopped production, cut off water and power. Next, the relevant departments will carry out random inspection and acceptance in August to ensure that the "ground bar" will not revive

"this eliminates unfair competition in the market and lays a solid foundation for the healthy development of the steel industry." On July 25, Xu Xiangchun said in an interview with the China times that this capacity reduction has solved the persistent problem that has plagued the steel industry for more than 20 years - the "ground bar steel" that cannot be removed

among them, Hebei and Jiangsu are more strict. As for the selection of suitable direct aging process in Hebei Province, after the military order of "reducing 17.26 million tons of steel and 14.22 million tons of steel-making capacity" was issued at the mobilization meeting of steel and coal capacity reduction in May this year, the province carried out the largest centralized action to resolve excess capacity in history in July, reducing 3.12 million tons of iron making capacity and 4.86 million tons of steel-making capacity

some general machinery and equipment for the transportation, separation, crushing, grinding and drying of fluids and solids

so far, the country has withdrawn a total of 31.7 million tons of steel production capacity this year, completing 63.4% of the annual task. Although this is still a long way from the requirement of "further reducing the steel production capacity by about 50million tons" proposed in this year's government work report, the task is more than half completed

according to Li Xinchuang, President of the metallurgical industry planning and Research Institute, the most prominent highlight of the iron and steel industry this time is that "no new capacity can be added". Li Xinchuang said that it is necessary to resolutely and thoroughly eliminate the production capacity of "ground bar steel" produced by power frequency furnaces and medium frequency furnaces that are free from disorderly competition outside the scope of national statistics, and support the best and eliminate the bad

"it is a good thing to completely withdraw the steel bars, but it also exposes a large number of scrap resources to be abandoned, which is a pity." Xu Xiangchun, for example, said that the export of scrap steel soared to 200000 tons in June

in this regard, Zhu Rong, a Chinese electric furnace steel smelting expert, believes that the production of electric furnace steel with scrap as raw material is the general trend of the development of the international steel industry. For example, the proportion of electric furnace steel in the United States reaches 70%, that in Japan reaches more than 40%, and that in China is only about 6%. It can be seen that China still has great development potential

"to develop electric furnace steel smelting, we must resolutely ban 'ground bar steel' and remove and standardize the production capacity of 'ground bar steel' of power frequency furnace and medium frequency furnace, which compete for resources and market." According to Zhao Xizi's estimation, at present, the production capacity of "ground bar steel" is not less than 120 million tons, and the output is not less than 70million tons. If the output of 70million tons of "ground bar steel" is cut off, 120 million tons of iron ore imports can be reduced every year, and 70million tons of scrap steel can be released to advantageous enterprises, which is both energy-saving and environmental friendly

ten years ago, steel mills can make money as long as they concentrate on expanding production. The faster they are built, the more they earn. Now such opportunities are long gone, but those steel enterprises that once had unlimited scenery are in a dilemma of heavy debts

since 2003, China's steel industry has achieved a number of steel tycoons after decades of vertical and horizontal cooperation, but it has also placed more small and medium-sized steel enterprises on the edge of life and death. The "barbaric growth" of the steel industry in the past doomed the current pain to be inevitable

by the first half of this year, the production capacity has exceeded 200 million tons, which shows that the business situation of the industry has improved significantly. For example, the profit per ton of steel can reach yuan, and some steel mills are close to 1000 yuan

echoed with the supply side reform, the current steel industry is also in a rare boom in history, driving the prices of related industries to rise in turns. More importantly, the debt risks of banks and other financial institutions to industries with excess capacity such as coal and steel also seem to be buffered

"de capacity is national and should not be borne by Hebei alone." Recently, some Hebei steel enterprises have complained about "unfairness". When Hebei went to the limit of production capacity, the steel production capacity of an eastern province increased by 15million tons. In addition, some steel enterprises are also dissatisfied with the fairness of environmental protection. A report quoted the head of Hebei state-owned steel plant as saying that the environmental protection cost of a ton of steel produced by compliant enterprises is about yuan, but the cost of enterprises with poor environmental protection implementation is only yuan/ton

in addition to fairness, capital problems have also become one of the heartaches of steel enterprises, including inadequate compensation funds and the financial problems that enterprises can face due to production reduction, so steel enterprises live on thin ice. In the interview, some heads of steel enterprises complained that when the relevant departments set the goal of reducing steel production capacity, they judged all large electric furnaces with more than 50 tons as the object of reducing production capacity, which was not desirable

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