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His remarks reveal an embarrassing fact of the current steel industry - the production and investment of the steel industry are accelerating, but the excess production capacity has risen again.
From January to October, the crude steel production of steel enterprises above designated size was 472.47 million tons, a year-on-year increase of 10.5%. In October, crude steel production was 51.75 million tons, an increase of 42.4% year-on-year.
The expansion of steel investment and production has made it more difficult for the country to regulate and control steel production capacity, and the difficulty of mergers and acquisitions has also increased.
At present, the Ministry of Industry and Information Technology and the National Development and Reform Commission are brewing a new policy to regulate steel production capacity and implement mergers and reorganizations.
Tang Bin found out at the grass-roots level that although the government gave policy support for mergers and acquisitions of steel companies, the current mergers, especially inter-provincial mergers, are still difficult. “Many provinces are happy to do steel mergers in the region, but for mergers across provinces. However, it does not support many governments and even actively subsidize local steel companies."
Therefore, although the situation in the iron and steel industry is picking up, "but the iron and steel industry is far from the requirements of the state." Tang Bin said.
In order to help steel companies get rid of the plight of loss, the government has adopted a series of measures. In February 2009, the State Council promulgated the adjustment and planning plan for iron and steel enterprises. Five policies have been fully implemented so far, including the export tax rebate rate to 13%.
The effect of the above policies is obvious. Only the large-scale infrastructure construction has led to a substantial increase in the demand for construction steel. This year's domestic consumption accounted for 90% of the steel consumption.
However, due to the low degree of industrial concentration and the disorderly competition among enterprises, the overcapacity in the steel industry is still intensifying.
At present, there are more than 1,200 iron and steel enterprises in China, of which more than 70 are large-scale iron and steel enterprises, and only 9 enterprises are producing more than 10 million tons of crude steel. With the expansion of domestic steel production capacity in this round, some relatively backward facilities such as small blast furnaces that have been shut down have begun to operate.
Tang Bin found that some of the recent iron and steel companies have suffered losses, so the next development situation is not optimistic.
At present, the National Development and Reform Commission is taking a number of measures to help Chinese companies out of difficulties. For example, the National Development and Reform Commission approved a number of powerful steel companies for foreign mergers and acquisitions; spending 22.6 billion yuan for the technological transformation of the steel industry; the future Development and Reform Commission will also focus on supporting key products. Such as Baosteel's silicon steel project and other energy conservation and environmental protection projects.
However, Tang Bin pointed out that after this round of policy stimulus, what will happen after the easing, we still need to wait and see.
The self-sufficiency of China’s steel has been raised from 88.51% in 2002 to 97.14% in 2008. Deng Qilin, president of the China Iron and Steel Association pointed out that the current contradiction between supply and demand of steel is increasingly prominent. Affected by the financial crisis, China's steel production capacity in 2009 is expected to exceed 20% in excess of actual demand.
Therefore, the contradiction between supply and demand in the steel market can hardly be effectively alleviated in the short term. The overcapacity, especially the proportion of lagging production capacity, and the sharp contraction in external demand make the contradiction between supply and demand in the steel industry more prominent.
Deng Qilin pointed out that one of the important goals of the joint reorganization of steel companies is to bring into play the synergistic effects of market resource technologies and management. Therefore, the consolidation of product standards and quality standards, and the promotion of technological standards through standards, can enhance the competitiveness of joint ventures. ability.
Domestic demand boosts overcapacity in the steel industry
"Shutdown of small blast furnaces and other relatively backward facilities began to operate again." On November 11, Tang Bin, senior engineer of the Department of Industrial Coordination of the National Development and Reform Commission, said at the 7th annual steel conference.