In view of the expansion impulse of steel enterprises, the raw material industry department of the Ministry of industry and information technology recently stressed that in 2018, we should continue to unswervingly grasp the work of iron and steel to production capacity, strive to achieve the upper limit target of “13th Five-Year” to production capacity ahead of time, and strictly prohibit the new increase of steel capacity on any grounds.
In 2017, under the joint efforts of relevant departments, localities, associations and enterprises, the development environment of the steel industry has been continuously improved. From January 2017 to November, the ferrous metal smelting and calendering and industry main business income was 5 trillion and 656 billion 470 million yuan, up 20% from the same period, 313 billion 880 million yuan to achieve profit, and an increase of 180% over the same period.
According to Xu Wenli, director of the Department of raw materials and materials of the Ministry of industry and information, the first two years of “13th Five-Year”, the iron and steel completion of the production capacity has exceeded 1.15 million tons, the “13th Five-Year” 1.5 million tons of the upper limit target, there are tens of millions of tons of the remaining scale.
To achieve the above goals, the Ministry of industry and Commerce said that we should comb out the weak links in the work and ensure that backward production capacity should be exhausted. Specific measures include establishing a long-term mechanism to crack down on land and steel and resolutely preventing the resurgence. We urge local authorities to take the “zombie enterprise” as the starting point and unswervingly remove inefficient production capacity. We must do a good job in production capacity replacement audit and strictly prohibit any new steel production capacity for any reason. We should strengthen the guidance and supervision of local work, ensure that we accomplish the goal of capacity production, and create a favorable environment for the development of the steel industry.
In 2018, the Ministry of industry and Commerce will continue to optimize the layout and create a fair market environment. Systematically study supporting policies and measures to support the development of EAF steel, carry out steel and coking industries, standardize enterprise dynamic management, and promote standardized operation of enterprises. We should strengthen the analysis and study of the problem of tendency and tendentiousness, and gather all parties’ strength to safeguard the fairness and stability of the steel market.
Meanwhile, the Ministry of industry and Commerce will continue to promote the transformation and upgrading of the steel industry. From the supply side, we should strive to improve the quality of supply and push forward the steel products to the middle and high end. Taking the pilot project of intelligent manufacturing as the starting point, we will gradually explore and form a new intelligent manufacturing mode that can be popularized and replicated in the whole industry. We should speed up the popularization of advanced and applicable energy saving and environmental protection technology and equipment, enhance the level of green development of the steel industry, and achieve sustainable development.
Li Sha, an analyst at Guang – FA securities, expects the high pressure of environmental protection to become the main means of iron and steel production. In 2018, the total industry capacity contraction will exceed 45 million tons, and the output will be reduced by 22 million 970 thousand tons to 37 million 550 thousand tons and 2.76% to 4.51% from the same period. Supply continues to shrink, demand is stable and slowing down, supply and demand pattern continues to improve, and the profitability of the steel industry will continue.