For steel prices due to price increases caused the expansion of the impulse, the Ministry of industry and information technology industrial raw materials company recently issued a document stressed that 2018 will continue to firmly grasp the iron and steel production capacity to work, and strive to complete the "maximum target 13th Five-Year" capacity to advance, prohibited to increase new steel production capacity.
In 2017, under the joint efforts of relevant departments, local organizations, associations and enterprises, the development environment of the iron and steel industry was constantly improved. From January 2017 to November, the main business revenue of ferrous metal smelting and calendering plus industry increased by 5 trillion and 656 billion 470 million yuan, up 20% compared to the same period last year, and realized a profit of 313 billion 880 million yuan, an increase of 180% over the same period last year.
According to the Ministry of raw material of iron and steel company director Xu Wenli introduction, "two years ago, in 13th Five-Year, to complete the" iron and steel production capacity has more than 1.15 tons, 1.5 tons from the "13th Five-Year" limit, with tens of millions of tons of scale.
In order to achieve the above objectives, the Ministry of industry and information said that the weak links in the work should be combed to ensure that the backward production capacity should go to the end. Specific measures include establishing against the "ground of steel" long-term mechanism, resolutely prevent a stirring among the dry bones. To urge local areas to handle "zombie enterprises" as the grasp, unswervingly to remove inefficient production capacity. We should do a good job of capacity replacement audit and strictly prohibit adding steel capacity for any reason. To strengthen the guidance and supervision of local work, to ensure the completion of the task of achieving the goal of production capacity, and to create a good environment for the development of the steel industry.
In 2018, the Ministry of industry and information will continue to do a good job in layout optimization and fair market environment creation. 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 Research on the problems of the tendencies and tendencies, and bring together all the forces to safeguard the fairness and stability of the steel market.
At the same time, the Ministry of industry and information will continue to promote the transformation and upgrading of the iron and steel industry. From the supply side, we will strive to improve the quality of supply and push forward the steel products to the middle and high level. With the pilot demonstration of intelligent manufacturing as the grasp, the new model of intelligent manufacturing can be explored and formed gradually and replicable in the whole industry. We should speed up the popularization of advanced and applicable technology and equipment of energy saving and environmental protection, improve the green development level of the steel industry and realize the sustainable development.
Li Sha, analyst at GF Securities, expects that environmental high pressure is expected to become the main means of iron and steel capacity. In 2018, the total capacity of the whole industry will shrink to over 45 million tons, and the output will be reduced from 22 million 970 thousand tons to 37 million 550 thousand tons, or 2.76% to 4.51% over the same period. Supply continues to shrink, demand steadily slows, the supply and demand pattern continues to improve, and the steel industry's profitability will continue.
