Steel production in the second half to worrying

By the end of July, China Hot Dipped Galvanized Steel Sheet production capacity to complete only 47% of annual objectives and tasks, the National Development and Reform Commission repeatedly issued a "military order." Yesterday, the National Development and Reform Commission published the Policy Research "continue to promote industrial restructuring," a text, once again pledged to fully resolve the overcapacity contradiction, saying that steel resolve serious excess capacity conflicts related work is in order. Behind the "Table determination", it is no New Deal merely reiterated, follow the previous policy, and the implementation of the effect is not good in the first half, which led to the industry's concerns.
There is no clear new approaches
Yesterday's article suggested that the NDRC will strengthen the relevant local, central enterprises in compiling steel industry to resolve the overcapacity in the development of a turnaround embodiments guidance. August 9, the National Development and Reform Commission Industry Department inspector Shannon said in an interview, also said the steel production capacity to accelerate in the second half to ensure completion of the task. But it had not made more explicit and effective way to ensure steel production can really speed.
In July this year, the NDRC disclosed "to the formation of a number of large steel enterprise groups" message. At the same time, there is a heavy steel industry to make rumors talking about: Capital Iron and Steel Group and Hebei Iron and Steel Group, the upcoming merger. The rumors, Shougang Steel will merge with the river to form the "Severstal Group" by the Wuhan Iron and Steel, Baoshan Iron and Steel merged to form the "Southern Iron and Steel Group" rival.
In this regard, "My iron and steel" Xu Xiangchun, director of network information to express his concerns. He said that after a number of large steel enterprises merger, the steel market is likely to have a monopoly. In addition, due to the large steel groups are more layers of management, may lead to high administrative costs, reduced efficiency, capacity to work but are affected.
Become a numbers game
"Steel production went to, nor can really lower the yield," director of the China Energy Economic Research Center of Xiamen University Lin Boqiang told the Beijing Daily reporter, in some places the temporary closure of the plant, even if the removal device removes capacity, etc. can also be the limelight in the past a factory, so that the device continues to run, the actual steel production will rebound.
In addition, the production decline does not mean that production capacity has been successfully removed. Lin Boqiang that illustrates the current state of steel prices yield restrictions, many machines idle, which leads to seemingly China's steel production declined, but in fact the capacity is still there.
In fact, Lin Boqiang pointed out that, although steel overcapacity, but steel prices have been rising, steel prices in the short term is still profitable, the subjective willingness to mass production of iron and steel profits, which is leading to the production of steel is difficult to promote the main reason for the one.
For this statement, analysts told the Beijing Daily reporter, since the beginning of this year, the voices of doubt in the steel market surging, as of yesterday, Tang billet reported to 2180 yuan / ton, compared to the beginning of this year rose 43.42 percent.
According to Customs statistics, in the first seven months of this year, total imports of 582 million tons of iron ore, an increase of 8.1%. Analysts pointed out that the profitability of China's steel enterprises generally improved this year, most of the steel mills at full capacity, so the corresponding iron ore imports increased significantly.
In terms of steel output, the National Bureau of Statistics data show that in June this year, China's crude steel production of 69.469 million tons, an increase of 1.7%, average daily production growth of 1.82%, the highest single-month record high. In July this year, steel exports 10.3 million tons, up 5.8%, before the July total exports of 67.41 million tons, up 8.5%, still the highest level in the same period made history.
Avoid quick success
Insiders told Beijing Daily reporter revealed that some steel prices just work together on the surface, in fact, has not changed. Xu Xiangchun said some local governments in receipt of environmental inspection notice, directly cut off the electric steel industry, steel prices during the environmental inspection temporarily stop production, the surrounding environment clean up after the assault was improved, but the inspectors to leave steel prices as usual.
"These extreme tricks only work in the short term, but in the long run will not play any real role, really want to solve environmental problems, to capacity problems, can not rely on power," said Xu Xiangchun, iron and steel production capacity has been difficult to go forward, the main reason lies in the laid-off workers, loss of assets and bad debts these three issues can not be resolved.
"If you go to the strict implementation capacity, many mills have closed down, scrap steel equipment from the point of view of steel prices, each producing a ton of steel costs several thousand dollars, but the state financial subsidies to only a few hundred dollars, the middle the difference is large, steel prices are still produced unacceptable from the perspective of the banks, the steel enterprises lending, financing shutdown will cause bank funding strand breaks, the amounts involved tend to be larger. "
In addition, Lin Boqiang also pointed out that the device can be forced to shut down scrap, but a large number of employees can not be directly fired, how a reasonable settlement, split steel enterprises employees, has become one of China's steel production capacity to be able to work in the most important issues. Lin Boqiang said, some provinces single economic structure, in addition to the steel industry, alternative employment opportunities are few, can not meet all steel enterprises employees may need to provinces, relocation, but the policy is still not perfect, need to wait for more details introduced.



Contact: Baosen Steel

Phone: +86-532-88890950

Tel: +86-532-88890950


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