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Steel province to update production target companies have removed the stove while the production side

China Hot Dipped Galvanized Steel Sheet province to update production target companies have removed the stove while the production side
Within a country to increase production capacity of the war has begun, and a few months before the biggest difference is that this time the provinces have raised the capacity to target.
21st Century Business Herald informed that the recent Sichuan, Hubei and other provinces announced the 2016 steel production capacity to target detailed to each furnace, and goals than originally reported increase, which makes a lot of companies by surprise. Henan, Guangdong, Jilin and other provinces have also met to increase the research capacity of steel production problem, and have increased as the target.
To accelerate the pace throughout production capacity, mainly due to the current capacity of the State Council inspection group is to carry out supervision over the country, called on all localities to speed up production tasks. And because the national capacity to adopt "early to earn more money" policy, the country had to modify the original production program.
Even more interesting is, since the second quarter of this year, steel trading business community stock remains at a low level, which leads to higher steel prices, steel mills also tasted the sweetness of limited production price. As steel prices rise, partly included in the dismantling list furnace resumed production.
Ji Yu e Chuanjia code to steel production
August 24, the Henan provincial government held a meeting to study the steel, coal production capacity to work, according to the law made in regulations under the premise, fixed the target schedule, the steel industry before the end of October, the coal industry before the end of November this year to complete the task exit capacity.
21st Century Business Herald was informed that the country's largest province of Hebei iron and steel, and steel province of Hubei, Sichuan, quietly go overweight productivity efforts.
Hebei annual target such as the proposed early Yajian iron production capacity is 10 million tons, 8 million tons of steel. However, the new capacity requirements to Hebei Reform Commission recently announced that this year a total of Yajian Hebei iron 17.26 million tons, 14.22 million tons of steel production capacity. And from August to November of tasks, including each of the companies in the region of the furnace, as well as capacity digital Yajian, we have specific announcements.
Analysts pointed out that the production capacity for iron and steel to the central move it real, local governments and enterprises a lot of pressure.
Now the State Council inspection team has to go, except the means available, the environment and other means can also be used in combination. Environmental compliance provisions must be, if not standard, electricity, water can be stopped funding, "If we put that line card green tight, a lot of substandard production capacity needs to be removed, at least 10% to 20% of capacity to be removed. "He said.
I understand that the supply-side views of Sichuan this year's proposed reform to the province in 2017 to 4.2 million tons of crude steel production capacity Yajian. However, according to the latest public information capacity, this target in advance to October 31 this year to complete.
Hubei supply side also put forward plans to reform the views of three years to remove two million tons of steel production capacity, but Hubei Development and Reform Commission announced to public information capacity is to be completed before the end of September this year to 2.18 million tons of steel production target.
To increase the production capacity of the country, since the end of July, the national iron and steel, coal industry production capacity only to complete the annual task, respectively 47%, 38%. Sources pointed out that all the provinces to steel production schedule varies, Zhejiang and other four provinces first to complete the annual task; progress Hebei and other eight provinces between 10% -35%; more than 10 provinces to resolve the overcapacity in steel work not yet substantial start.
While the production side of the recovery furnace demolition
Although greater efforts to remove capacity over the country, but because of high steel prices, good profit, many enterprises are facing while one side to resume production capacity embarrassment.
Aetna such as Tangshan Iron and Steel, the steel is booming, this year has resumed production since the end of last year, a few months shutdown situation.
However, according to information Hebei Development and Reform Commission this year, Tangshan booming company to dismantle 450 m3 furnace 1, to iron production capacity 520,000 tons. Tangshan Iron and Steel Aetna dismantle 35 tons of furnace 1, it relates to the capacity of 53 million tons.
Great Wall Steel Group Jiujiang Wire companies involved were dismantled 480 cubic meters a stove, a furnace 50 tons, to 540,000 tons of iron, steel-making capacity of 700,000 tons. However, according to 21st Century Business Herald reporter learned that the company has been in continuous production.
Tangshan Iron and Steel Company pointed out that every business has a lot of the furnace, in fact, the removal of a minority, but has resumed production enterprises, should not be very positive.
21st Century Business Herald informed, August 25 billet price in Tangshan, Hebei 2350 yuan per tonne, an increase of 40 yuan per ton than the previous day. Three rebar 2540 yuan per ton, unchanged from the previous day. Some steel companies pointed out that the current price per ton of steel can ensure earn $ 600, belonging to the higher profit.
This is precisely the capacity to go to the biggest contradictions in steel mills to make money, a lot of turning off the plant and the resumption of production, and enterprises and local governments do not have full capacity to power.
Iron and steel experts believe that the number of small iron and steel enterprises have pre - cut, but recently resumed production. Discontinued equipment is eliminated, or wait for the opportunity to resume watching the production, which is actually a market problem. As long as steel prices continue to rise, steel is difficult to really completely out of excess capacity.
The current iron and steel enterprises, especially state-owned large iron and steel enterprises are facing not only to overcapacity problems and need restructuring and development, especially the development of non-steel industry, so that surplus labor resources of enterprise employees a reasonable re-arrangement in the adjustment of economic structure. "The real difficulty is not only financial problems, but how to implement re-employment of laid-off workers." He said.

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