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Steel production capacity: the first half of the year banned

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It is a clear requirement for the state to ban "land and steel" before June 30, which is also the decisive battle for the steel industry to produce capacity. Currently, clamp down on "DeTiaoGang" smoothly according to the established schedule, progress and results in line with expectations, is a big positive, the development of the industry a strong boost the confidence of the general mills, conducive to the healthy development of the industry, the transformation and upgrading --

In July, China's ban on land and steel has passed. In the first half of the year, more than 600 companies were shut down and shut down, which involved about 120 million tons of production capacity, according to authoritative figures. At present, relevant enterprises have ceased production and water and power outages.

More than 600 companies were shut down

This year is going to be a year of production capacity. The state has made it clear that all "land steel" must be banned by June 30.

The so-called "DeTiaoGang", is refers to the scrap steel as raw materials, labor frequency, intermediate frequency induction furnace smelting, unable to effectively implement composition and quality control in the production of steel or steel, mainly for the steel used. Its quality, process, safety, environmental protection and other aspects are not up to standard and requirements, which bring great hidden dangers to the quality of construction projects. The state will clamp down on "ground steel" as a hard task to achieve market clearing. From the current situation, the ban on "land and steel" is progressing smoothly according to the established timetable, and progress and results are in line with expectations.

At the end of June, from the national development and reform commission, ministry of industry and other departments, according to the latest information in the first half of our country have closed, shutting down "DeTiaoGang" more than 600 production enterprises, involving about 120 million tons of production capacity. Through the data changes, the thorough cleaning of the "ground steel" work is thoroughly and thoroughly.

, 26, May 2 solstice steel dissolve excess capacity and coal industry development of inter-ministerial meeting eight out of inspection, to carry out around the ban "DeTiaoGang" specific inspection, guidance, and urged all local according to the requirement to do a good job of demolition. In the case of inspection, the production capacity of "ground steel" found in various areas has been stopped and water and power cut off. In accordance with the "four complete demolition" requirements, the "ground steel" is required to be put into place.

A spokesman for the national development and reform commission, meng wei, said the state authorities have always maintained high pressure on the production of capacity. According to the provincial government to clamp down on "DeTiaoGang" overall responsibility, work in various areas to clamp down on "DeTiaoGang" in June 30, and in the end of July the organization acceptance, form the summary report, submitted to the state council.

The second half of the year

In order to ensure "DeTiaoGang" thoroughly down in place, on the basis of local inspection, in August of this year, joint inter-ministerial meeting will be to "DeTiaoGang" ban areas to carry out special inspection, to ban does not reach the designated position, as a typical negative, submitted to the state council in accordance with the law in accordance with the rules seriously.

"In 2017, the most crucial decisive battle in the steel industry is the thorough removal of 'ground steel' and the prevention of 'land and steel'." Cisa secretary of the party committee and the secretary-general liu zhenjiang economic operation in the first half of the iron and steel enterprise symposium pointed out that these two aspects is a matter of iron and steel industry structure adjustment of the stability of the big problem, all industries and enterprises must not treat STH lightly, should actively cooperate with related departments.

Metallurgical industry planning institute director li xinchuang think, from a long-term point of view, should be combined with dissolve excess capacity construction of long-term mechanism, strengthen the "DeTiaoGang" illegal products and companies such as inspection, law enforcement and supervision. At the same time, timely revise and improve the quality standard of building materials, and eliminate the existence space of "ground steel" through product quality supervision.

It is understood that the country has established a corresponding regulatory system for the root cause of "land and steel", and has attached great importance to the role of social supervision. The head of the ministry of industry and information technology has said that after June 30, the company will carry out a thorough verification of the company if it receives a report of "ground steel". If the violations are true, they will be seriously held accountable.

Lay a foundation for industry transformation

For the health development and transformation and upgrading of the steel industry, it is of great significance and far-reaching significance to ban "land and steel". Mr Meng stressed that "ground steel" is illegal and illegal production, and has been the subject of the state's demand for elimination and cracking down. Such backward production, if not banned, would result in "bad currency driving out good money". Li xinchuang expert thinks, such as banning "DeTiaoGang", expand the effective supply, reduced the hidden trouble of product safety, purify the market environment, promote the formation of a fair and competitive industry, boost the legal compliance the confidence of the iron and steel enterprises.

In fact, the effect of banning "land and steel" has been reflected in the industry operation level. On June 30, a report released by the china-china iron and steel logistics professional committee showed that the steel PMI for June was 54.1 percent, continuing to be in the expansion range. Main component index, index of new orders from highs of 2.1%, the production index is up 0.4% in May, new export orders index rose 1.4%, finished goods inventory index fell by 1.2%. This suggests that the current domestic steel production is accelerated, while demand has receded affected by seasonal factors, but the overall sales situation is still good, steel mills backlog of inventory is not obvious, the production and basic normal, iron and steel industry run more smoothly, the boom of industry to maintain a higher level.

Content in iron and steel logistics professional committee thinks, basic elimination of close to 120 million metric tons of "DeTiaoGang" capacity, the steel industry this year to capacity more obvious actual effect, to improve the relationship between supply and demand, improve enterprise's profit ability has great positive influence. Market expectations of steel prices continue to rise, and the increased enthusiasm of financial capital flows to futures markets and traders may drive steel prices to remain high or even rise significantly.

At present, the profits of steel mills remain high. According to data from the national bureau of statistics, the total profit of black metal smelting and rolling processing in China reached 105.31 billion yuan in January and may, up 93.5% year on year. Predictably, steel prices remain high even rise trend, and to remove "DeTiaoGang" leads to the formation of a loose and scrap supply on iron ore prices, steel industry benefits will continue to improve.

"For the benign development of the steel industry, going to capacity is like a clean sweep." 'a prominent problem in China's steel industry in the past is that it is uneven and mixed, and the transformation and upgrading are difficult,' said the company's vice President, jd.com. Now, China has laid a good foundation for the transformation and upgrading of the industry by eliminating backward production capacity, removing illegal and illegal production capacity, clearing "land and steel" as the key point, and vigorously advancing steel production capacity.

Taigang group chairman li said the ban "DeTiaoGang" for the healthy development of the iron and steel industry to create a good market environment, is helpful for enterprises to improve business performance, promote the technical innovation and transformation and upgrading, and to reduce environmental pollution, realize green development.



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