Big inspectors: steel production capacity situation to an emergency
In early September, by the National Development and Reform Commission, Ministry of Industry, Ministry of Finance and other 10 ministries and commissions to the steel production capacity supervision team has basically completed the task of team. According to the "Financial State Weekly" reporter learned that the focus of inspection supervision of the ten road inspections include the implementation of the policy to the production capacity of the implementation of the task decomposition and progress of the implementation of the actual withdrawal of production capacity, fund-raising use of funds, Staff placement and other aspects of the eight aspects.
According to the general idea of central supply side reform, to resolve the excess capacity is 2016 and the "thirteen five" during the important work. At the beginning of the year, the State Council issued the Opinions on Resolving the Overcapacity in the Steel Industry to Realize the Development of Disaster Reduction (hereinafter referred to as "Circular 6"), which clearly stated that starting from 2016, the crude steel production capacity could be reduced by 100 million to 150 million Ton.
August 4, iron and steel industry to resolve the excess capacity and the development of the work of the Inter-Ministerial Joint Meeting (hereinafter referred to as "inter-ministerial joint meeting") held a national teleconference. National Development and Reform Commission, the Inter-Ministerial Conference convenor Xu Shaoshi said that the overall look, there is an imbalance between the areas where production capacity exists.
Xu Shaoshi summed up the three "must pay close attention to" the problem: a small number of areas to work on the importance of production capacity, lack of awareness of urgency, fear of going to production will affect economic development in the face of difficulties and challenges, lack of confidence, Some areas and enterprises to see the price of steel and coal rose, to the determination of production appeared shaken.
Inspector of the relevant parties to the "Financial State Weekly," told reporters that the inspection action should not only check the progress, but also to clarify the current capacity-related work in the end what the problem and find out the reasons for these problems and so on. This will help to 2016 years to go to the implementation of production capacity, but also for the "thirteen-year" period to achieve production capacity goals and supply side of the structural reform lay the foundation.
Iron and steel industry veteran, said the domestic steel supply overcapacity pattern will not fundamentally change the short term, the steel industry to resolve excess capacity, to achieve the development of poverty alleviation, and then complete the transformation and upgrading. To sum up the previous experience to resolve the excess capacity, identify the problem, eliminate the implementation of errors, long-term development plan, is a top priority.
To work since the deployment of production capacity, local authorities often receive the local private business owners of the "help" phone. Such enterprises in the production capacity of more than 100 million -300 million tons, the original capital investment in more than 50 billion -100 billion, and mostly by the private sector to catch up with the market downturn, the company through the loss of production "live Down. " The recent increase in production capacity to continue to increase pressure on the implementation of environmental issues in the first of these enterprises into the local self-examination of the line of sight.
Put in front of these enterprises are two ways: First, shut down, pre-investment into the future, investors will face the future debt recovery; the second is to increase investment in environmental protection, which means just in the first half of the year Tasted the sweetness of the process need to take, resulting in lower profits or even losses.
This is the mid-May since the inter-ministerial joint conference deployment started production capacity to fight tough, the inspection team to see the Shandong, Hebei and western regions, a large number of miniature iron and steel enterprises.
Not only that, "Financial State Week" reporter also learned from the inspection team, the current responsibility to participate in the division of responsibility to the state-owned enterprises also face a dilemma.
Take Xuanhua Iron and Steel (hereinafter referred to as "Xuanhua Steel") of Hegang Group as an example. Public information display, in accordance with the river before the proposed planning, the early construction of 10 million-ton-grade boutique steel base in the specific process to ensure that the new plant in the coastal conditions with the operation, the old factory in Zhangjiakou Xuanhua District and then discontinued dismantling. On this basis, and then mergers and reorganization of the province, especially in Tangshan other steel production capacity, planning and construction of 10 million tons of fine steel production capacity, and ultimately the formation of 20 million tons of fine steel base in coastal areas.
Iron and steel industry have such an account: a 10 million tons of steel production capacity, construction funds if not 50 billion -600 billion can not be built up. According to the first new and then remove the steps, the transformation of existing equipment is also to continue? If the existing equipment after the implementation of the transformation of the next year after the removal, does it mean that the previous investment is equal to waste? This is not a small risk, but if the soldiers do not move, with the company's existing production capacity, especially in the first half of the steel market in view of considerable profits, interests in sight.
Not only enterprises, local governments have encountered problems. Steel mills and local economic development are closely linked. Xuanhua City, Hebei Province, for example, Xuanhua existing 800 million tons of production capacity, once the relocation, Xuanhua future economic development also need to plan ahead.
Another example is Jiangsu Province, as the private steel enterprises mainly in the second largest steel province, private capital investment so that the competitiveness of enterprises in the region ahead of the country, from a longer term perspective, and from the Yangtze River Delta regional economic considerations, the future combination of Anhui , Hubei, Hunan and other places of steel production capacity, whether there is a regional optimization of space? How to do a good job in regional economic structural adjustment with the opportunity of production capacity?
More specifically, to go to work thousands of things, such as: which companies need to go to production? Which regulatory indicators are effective? Who is responsible for the capacity to include? Does the related policy cover the problem? How does the incentive mechanism work in the process of production capacity? These are many companies are very concerned about the current problem.
These problems straighten out before the steel industry to the effect of production capacity is not "ideal." According to the August 4 inter-ministerial joint meeting briefing shows that in the first half of 2016, steel production capacity to more than 1300 million tons, is the target of this year's task (45 million tons) of about 30%.
"Now go to production capacity is the high-pressure situation, the local allocation of indicators, strong implementation." To work to achieve the desired results, or to the parties to reach a consensus and understanding. "There are local steel industry associations, told reporters.
National Bureau of Statistics data show that the first half of 2016, the national crude steel production 399 million tons, down 1.1%. But in June this year, domestic crude steel production reached 69.47 million tons, equivalent to an average daily output of 2.135 million tons, more than 2.314 million tons in April, the historical peak. In the first half of the year, the steel enterprises generally gained profits through the resumption of production. Even in the cooling-off period after the overheating of the market in the second half of the year, the enterprises holding the idea of "carrying on" and "eating the capital" are not individual.
"Willing to Ting, because before making money, there are old to digest, but two or three years after the problem of excess production capacity is not eased, the excess market or corporate profits will be exhausted." There are people concerned about the industry.
"The first half of the iron and steel industry to work on the overall progress of the work of the coal industry as a whole feeling." State-owned iron and steel enterprises responsible person said that the overall existence of the steel industry and so on to see the idea of some enterprises in the survival and business reality there do not want to go before, Dare not go to the fear of hard feelings.
In particular, since the second quarter of this year, due to sales market prices warmer, building materials market (wire, rebar as the representative of the product) with the recovery in prices. But the threshold for such technology is not high varieties, the price is inevitable to fight. In order to quickly seize the market, increase profits, product quality or even a certain degree of decline.
Another extreme phenomenon is that the work to promote the process of production capacity has also led to some regional product mix imbalance.
Ningxia, an alloy products, for example, due to power cuts and other specific measures, the product yield dropped significantly, but the demand was so strong performance, resulting in the relevant product prices from about 4,000 yuan per ton soared to about 7,000 yuan per ton.
"Twelfth Five-Year Plan" period, the country out of backward steel production capacity of more than 90 million tons, but the problem of excess capacity is still serious.
Combined with the past to work capacity, the sources, the 90 million tons capacity out, the industry is not "quench their thirst." The main reason is that time to capacity in the process, the local governments, enterprises mostly from the impact on the region's capacity to start.
"The most worrying and the industry's most reluctant to see the situation is that despite the money spent, and 100 million tons of production capacity to complete the goal, but the industry overcapacity situation is still serious, the industry situation is still no substantive change. Say.
Summed up relevant experience, the current round to go to capacity to promote backward production capacity, unqualified capacity and excess capacity to exit the market as soon as possible, so as to achieve the industry's turnaround and development and transformation and upgrading.
For the relocation and transfer of industry work, the Ministry of Industry and stakeholders said that for individual areas there are still new projects or new procedures for non-standard procedures, if not grasping typical, do not deal with, extended to the country, the relevant regulatory documents Implementation will be greatly reduced.
National Committee of the CPPCC Economic Committee, deputy director of the Ministry of Industry and the former Minister Li Yizhong to the "Financial State Week" reporter said that the real need to transfer the industry's advanced technology, advanced equipment. The so-called reduction of replacement or equivalent replacement, the relevant departments must do a good job of implementation and supervision, to prevent the transformation by the name of the increase in new production capacity.
To the steel
Zombie enterprises, namely, production and management difficulties, it is difficult to save or rescue the market competitiveness is still very weak, that is, environmental protection, energy consumption, production is not in line with national laws and regulations; ; The future development of enterprises with limited, that is not in line with national or regional policy guidance.
For these enterprises, to really want to resolve the excess capacity to produce results, the need for a fair market system and competitive environment, otherwise it is difficult to do less.
In the first half, the steel market to pick up, around the steel production workshop production rate comparable to regular steel mills. Which makes this to the production capacity in the wait-and-see period of iron and steel enterprises once again swing. "The market is good, a large number of non-mainstream steelmaking process of steelmaking facilities have started, the use of scrap steel, IF furnace to steel is one kind of reflection.Although the national statistical department has no clear data, but such enterprises Production can not be small. "There is a southern steel sales department official told the" Financial State Week "reporter.
This is called "to the steel enterprises" of the manufacturers have common characteristics: generally not installed environmental protection facilities, fail to safety requirements, there is no quality control facilities: to buy scrap is not invoiced, selling steel is not invoiced. Its main sales are rebar-based construction materials, although the national mandatory standards, but these non-compliant products or into the market, the lack of strict quality control, it is difficult to have security, more likely to cause building safety incidents.
China Iron and Steel Industry Association official told the "Financial State Week" reporter, to steel enterprises have been free in the steel industry edge, despite repeated prohibitions. Relevant supervision involves industry and commerce, quality inspection, environmental protection and other departments.
"Illegal enterprises to repel and dispose of the situation, will greatly affect the quality of work to resolve the production capacity.I think if illegal enterprises can not exit the market as soon as possible, some of the excess capacity of compliance business will not be willing to quit the production capacity." China Steel Association Relevant sources said.
Illegal, backward production capacity should be resolutely quit, this is the work of production capacity to reflect the premise of one of the fair market. Long-term tracking of the steel industry that only create a fair and just market environment, in order to lay the foundation for further in-depth work capacity for the industry and enterprises to enhance competitiveness, to create conditions for the transformation and upgrading of the steel industry.
In the same quality, the cost of steel prices is a watershed competition. Which in addition to the efficiency of the operating mechanism of the competition, there are environmental indicators of this hard.
"We are now producing one ton of steel about the cost of environmental protection between 150-200 yuan.Environmental poor implementation of the enterprise, the cost of 40-50 yuan per ton, or even no cost.Production of iron and steel inevitably have to face the sewage and Dust, if the environmental aspects of omissions, fairness, environmental protection are out of the question. "Hebei, a state-owned steel plant, said.
"National efforts to resolve the overcapacity goal is to better the industry, but once the relevant inspection, the standard implementation of omissions, for the compliance of steel is not fair." The source said.
"The process is very tangled. Surplus of the environment, increase investment in environmental protection undoubtedly adds some uncertainty to the future business." There are local private steel plant, said the current work on the production capacity to wait and see attitude, that is, a With the relevant departments to check, on the other hand weigh the feasibility of enterprises to increase investment in environmental protection.
Government departments are determined. September 12, the Inter-Ministerial Joint Meeting of the Office of the form of Mingtian Telegram issued a "notice" that the next step, in accordance with the requirements of 6 text, and actively promote the production capacity of the work, resolutely eliminate backward production capacity, crack down on Steel "and other illegal acts," the bar "capacity and backward production capacity to be immediately removed, not" scouring and not eliminate "to prevent" to the steel "and backward production capacity" resurgence. "
The face of national level to the determination of production capacity, some local governments for their own economic development and stability considerations, will be in a dilemma. This is the moment the existence of the direct cause of zombie enterprises in individual regions.
There is a direction to the inter-ministerial joint meeting to resolve the excess capacity difficulties, the problem is more, there is no policy on the formation of polymerization effect. At the same time, in order to report the task, some already discontinued the project has become a local "charge" reported the task of choice.
"The local government to resolve the problem of excess capacity on the need for uniform thinking, unified understanding, can not just look at the surface, entangled in front of the contradictions and interests of the relevant departments should not prevarication, and actively implement the relevant measures to resolve excess capacity and continuous improvement . "Inspection team official said.
"Local governments generally hope to resolve the overcapacity and enterprise development, structural adjustment, transformation and upgrading together," the source said.
The new problems arise from this. The attitude of some local enterprises is not good business in the future development of a clear direction before the troops do not move, waiting for the policy, to go to capacity and not too positive.
To an annual capacity of 5 million -600 million tons of steel, for example, has eight of its blast furnace due to poor efficiency in 2015, there are three shutdown in the maintenance phase. Combined with local capacity assignment to the task, requiring the plant shut down one that is in line with the current round of production capacity tasks. At this point, companies will choose to first report a look at the situation, the other two depending on the market price and then choose to resume production.
"From the market, if we do not go to production, the final industry no good days, the collective sunken ship or to go through a long period of Japan and other countries to adjust production capacity." China Steel Association stakeholders that the domestic steel industry dispersed, And the production level is not high. More than 95% of the companies do not have the Nippon Steel and Pohang's production and operation level, a lot of products are popular, relying on market price to make money, this case, the reform is imperative.
To participate in the supervision of work to the production capacity of people told the "Financial State Week" reporter, found that there are local governments that the province does not lack steel or steel is not excessive. In fact, regardless of a province, a city is only a regional market, is part of the national market, the former can not replace the latter. The interests of the former can not represent the national interests. Local governments have a global perspective, and jointly promote the national goal of defusing excess capacity. On the contrary, in some provinces with advanced production capacity, if only a one-size-fits-all (to quantify the capacity to go) approach is also open to question.
The source suggested that the current regional market should be based on previously reported responsibility to open their own capacity to progress, and the introduction of independent third-party monitoring bodies and platforms.
Metallurgical Industry Planning and Research Institute, Lee Chong Chuang believes that to the production capacity can not be simplified. According to the law in accordance with the regulations, effective and effective. Priority is to make non-compliance, disrupt the backwardness of market development environment, illegal enterprises to exit.
Of "wait and see" to take the initiative
July 26, the steel industry to resolve the excess capacity of field experience exchange will be held in Hangzhou. The meeting was organized by the inter-ministerial joint meeting. The meeting pointed out that the local and central enterprises to implement the program has been submitted to the State Council for the record, the parties have signed letters of responsibility, supporting policies and measures have been introduced in 2016 industrial enterprises restructuring special award funds allocated in place, eliminate backward production capacity, illegal construction projects clean-up And joint enforcement of three special operations are being implemented.
In accordance with the above tasks related to deployment, to resolve the excess capacity in the process, but also need to address three issues. Including: resolving the excess capacity process itself involved in social stability and staffing issues; resolve the process involved in the disposal of core assets, including debt and debt disposal, etc .; after the transformation of the transformation, structural adjustment, upgrade.
As to resolve the excess capacity in the work of the sample, Hangzhou Iron and Steel Group Corporation at the meeting introduced the specific work of the operating experience. Located in the economically developed provinces of the provincial capital city, Hangzhou Iron and Steel to the production capacity of steel with other provinces do not have the "special." However, some industry participants said that if the domestic steel mills are learning to change the thinking of Hangzhou Iron and Steel transformation, as early as the plan to look at the development of industry and business issues, then the domestic steel industry to the production capacity may also smooth a lot of.
"Capacity is the core assets of enterprises, corporate concerns are realistic.But we need to resolve the excess capacity of this deployment, to promote the structural adjustment of the supply side of the structure, the passive capacity to take the initiative to resolve the excess capacity. The meeting said that to resolve the excess capacity itself is a specific goal, to achieve the desired results, the problems involved, to solve the difficult. But if you do not solve, do not move forward, the future is difficult to resolve the effect of ideal.
"In the first half of this year, in the inter-ministerial joint meeting of the co-ordination, to work, although the work has made a good start, but also to some extent reflects the current attitude of the parties to work on capacity as a whole more impatient. Concerned about the steel industry to work capacity of the people, told reporters.
In the steel industry team that the steel industry as a national supply side of the important focus of reform, the future along with the excess capacity to the industry will gradually clear, the supply and demand pattern will gradually improve. However, it should be noted that the supply side of the reform is structural adjustment, the reform of the steel industry, the division of enterprises will continue to increase.
These people on the "Financial State Week," told reporters that production capacity to adjust the structure, can not engage in a planned economy, nor blind development of infinite. All aspects of development to a certain extent, we need to do to adjust, so strictly speaking, the stage to see the results, not the ultimate goal of structural adjustment, but the process and means. According to international experience, to resolve the excess capacity is often related to progress in the work of 5 years or even longer, before gradually show results.
He also cited, for example, China's current widespread use of continuous cast iron technology as an example. From the 1990s, China's steel industry began a large-scale "die casting" and "continuous casting." Until 2005, China's steel industry was mainly based on continuous casting technology. In 2000, China accounted for 70% of continuous casting means, after 2005 to 95% or more. Only this technological progress, the industry spent more than 20 years.
And today's work to resolve excess capacity, obviously there is a more complex side.
"The first half of the steel industry to complete the production capacity of 30% of the task, the task may be completed the amount of water." South China a large steel production department heads that part of the production capacity in the first half is zombie capacity, the second half is still There are 3200 tons of the more serious task, go to production capacity is to play real "beating."
Indeed, the non-backward excess capacity needs step-by-step, orderly removal, transformation and upgrading. This is to resolve the excess capacity of the work of an important battlefield, but the local government or business is no easy task.
"Combined with the second half of the iron and steel industry to tackle the task of production capacity, capacity to go around the task is to abruptly get rid of production capacity, or strategic restructuring; is to continue to maintain low production efficiency, or they must squeeze out from the enterprise, which way more Conducive to industry and business transformation and development, in the way and support policy there are many in-depth discussion of the place. "The source said.
Some recent cases in the international market have reference. In the global steel overcapacity today, how to deal with the crisis and challenges, has become the iron and steel enterprises in front of the most practical issue.
To South Korea Dongguo Steel Company nearly a year of industrial restructuring, for example, as South Korea's third largest steel, Dongguo Steel's performance in recent years, lackluster. Due to the limited size of the Korean market, coupled with the impact of China's steel, shipbuilding, construction and other downstream industry demand continues to slump.
In the past year, Dongkuk Steel has improved its market share and profitability through restructuring its business structure, restructuring its non-core assets and developing its main business. Measures are the development of product differentiation, tailored to enhance the market control, improve business income.
From this, Wuhan Iron and Steel Group Institute of Information Institute engineer Ye Ye believes that small and medium steel enterprises in an increasingly competitive market environment in order to survive is particularly difficult, companies only dare to break the old framework in order to achieve rapid development.
Luo Ye said that the domestic small and medium steel enterprises should also boldly implement the institutional restructuring, streamlining the scale of production, to develop the main industry, the sale of loss-making assets, reduce the debt burden, according to the diverse needs of customers, and effectively create superior products to seize market opportunities, Improve market share. In addition, enterprises should continue to strengthen the external and first-class enterprise strategic cooperation, the potential to tap the potential, reform and innovation, forge ahead.
Zhong Yu Chong Feng, chairman of the Group proposed, with the national supply side of the general direction of reform, from the enterprise perspective can be increased from three aspects of effective supply for enterprise development assistance. First, the docking terminal, in order to pin production, remove inefficient production, improve the effective supply. Second, adjust the supply structure, reduce production costs and supply costs, increase the effective supply of high-end. Third, information technology upgrades, enterprises can use the Internet + means to help enterprises in production, sales, logistics network, starting from the sales, Daobi traditional corporate restructuring.
The current merger of Baosteel and Wuhan Iron and Steel, two large central enterprises, shows the direction and determination of the steel industry to resolve excess capacity through merger and reorganization in the market. This important attempt will help the industry reorganize the entire steel industry.
Long-term concern about the iron and steel industry, said, imagine, if the future of about 600 domestic steel companies, mergers and acquisitions through the formation of 10 iron and steel group, then the vision of China's steel power can be expected.
Qiu Yufeng that both domestic steel industry in 2005 from top to bottom development policy adjustment, or the 2008 financial crisis forced the domestic steel industry to market-oriented structural adjustment, because at that time the relevant supporting policies and implementation problems and failed Stick to it. The supply side of the reform to work under the production capacity, "is the market DaoBi and policy to promote the combination of the two - way adjustment.
He also mentioned that if the opportunity to miss again, and the future stability of the steel industry, I am afraid it will take more time and cost.