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Coastal South by Northeast Northwest drop steel production capacity is now distributed maneuvers signs

In de production background, the China Hot Dipped Galvanized Steel Sheet production capacity distributed signs of metastasis appears: coastal provinces steel production general growth, with Guangdong sprung steel production year on year increase of 24%, while steel production in Northeast and Northwest provinces fell significantly, which Heilongjiang and Ningxia the steel production was reduced over 30%. The sign reflects the level of economic development of different regions of the imbalance, steel production grew faster correspond to the high demand for steel, indicating that the local economy is more active.
In the background to the production capacity, the transfer of steel production capacity distributed signs appear. Provinces and cities nationwide steel output data reporter combing National Bureau of Statistics released the latest found in the coastal provinces universal steel production growth, the sudden emergence of Guangdong Province, while steel production in Northeast and Northwest provinces fell significantly.
Data show that from January to July this year, Guangdong steel production year on year increase of 24%, steel production in Hebei, Shandong, Jiangsu and Guangxi successively up 4.8%, 9%, 2.6% and 4.1%. The steel production in Heilongjiang and Ningxia were down more than 30% decline came in the forefront.
South China's steel output rise
In the push to resolve the overcapacity tasks, from January to July this year, the national production of pig iron and crude steel double down, down by 1.4% and 0.5%, but still rolled steel output rise, the cumulative production of 657.049 million tons, an increase of 1.9%.
Iron and steel production capacity of the fastest growing areas in the southern coastal province of Guangdong. Data show that from January to July this year, Guangdong Province, the cumulative production of 8,841,300 tons of pig iron, crude steel 12,057,400 tons and 21,882,200 tons of steel, an increase 46.4%, 26.9% and 24%. Among them, steel 6,000,100 tons, an increase of 26.4%; wire 2.6261 million tons, an increase of 6.5%; cold-rolled sheet 1.7169 million tons, an increase of 24.9%.
"Baosteel Zhanjiang project into production pushed up steel production in Guangdong." Analysts told reporters.
Neighboring Guangxi, before July steel production also increased by 4.1% to reach 20,401,300 tons. Local new million-ton steel project - WISCO Fangchenggang steel base of cold-rolled production lines are fully operational in March this year.
Coastal provinces, Jiangsu, Shandong and Hebei three steel crude steel and steel products showed a rise in the main producing areas. Among them, Shandong January-July cumulative production of 40,649,500 tons of crude steel, an increase of 4.8%; steel production was 55,973,600 tons, an increase of 9%. Crude steel and steel products in Hebei grew 0.55% and 4.8% respectively, crude steel and steel products in Jiangsu were also increased by 3% and 2.6%.
In this regard, analysts said, Hebei and Jiangsu provinces cost advantages are obvious, good business efficiency. As prices rise, corporate profits recover quickly production naturally rises rapidly. The northern and western steel raw materials are transported from the coast to the inland port, and the output of products in the local and digestion can not afford to, need to transport it, the cost of logistics and procurement of raw materials caused by relatively large.
To produce inland energy reduction replacement of production capacity of coastal space is becoming the new direction of the steel enterprises development planning. Baosteel and Wuhan Iron and Steel is not only to integrate the development of coastal areas provinces and cities, a statement River Steel Group also released in June this year, said Xuan Steel Hegang overall planning to move out of Zhangjiakou, Xuanhua Steel in Hegang joint capacity retention Hegang Tangshan steel, steel bearing steel river section optimize production capacity together with the integration and restructuring, relocation to Tangshan coastal areas, the future will form a 20 million tons of steel boutique coastal base.
Northeast and Northwest production decreased significantly
This year, the northeast and northwest regions yield substantially reduced. Liaoning, Heilongjiang and Jilin before July crude steel output down 7.2 percent, respectively, 27% and 20.8%, steel production dropped 6.8%, respectively, 30.3% and 18%. Among them, Liaoning, crude steel and steel products were ranked the fourth, fifth, the top five steel-producing region this year, steel production fell only one province.
Similarly, steel and crude steel production ShanGanNing green new five provinces in the northwest are also, without exception, both big drop. Among them, Shaanxi, before the July crude steel output was 4.66 million tons, down 23.7% year on year; steel production 6.527 million tons, down 35.8% yoy. In Xinjiang, January-May of steel industrial added value down 25.2%.
"The whole layout of the steel industry to develop along the coast, the Midwest do not have the advantage of the phase-out of production capacity, which is the trend of the future development of steel production capacity." Analysts said.
Metallurgical Industry Planning Research Institute Li Chong believes, on the one hand steel production figures reflect the level of economic development of different regions of the imbalance, steel production grew faster correspond to the high demand for steel, indicating that the local economy is more active; the other hand, production also it reflects whether the enterprise competitive advantage, high yield steel prices explain itself - competitive in terms of cost, operational efficiency.
The gradual rise in steel production in southern China, revealing the steel industry restructuring, transformation and upgrading a new direction. Zhanjiang and Fangchenggang two major projects on the local economic structure, regional development and industrial layout play a decisive role, and competitive advantage relative weakening of the steel industry in the Northeast will also find a new momentum of economic growth in transition.

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