Iron and steel coal into the "midfield" stage, to go into the "bone gnawing" comprehensive assault period

                  Column:Industry trends Time:2017-10-16
                  Some interviewed enterprises, grassroots cadres, industry experts said that iron and steel, coal has entered the "midfield" stage. Since last year, remarkable achievements...

                  Some interviewed enterprises, grassroots cadres, industry experts said that iron and steel, coal has entered the "midfield" stage. Since last year, remarkable achievements, but with the iron and steel, coal prices rise, to capacity wait-and-see mood intensified, meaning to go into the "bone biting" comprehensive assault period. Recommendations from three aspects, enhance the enterprise to resolve excess capacity, active transformation and upgrading of enthusiasm, rich local government regulation, disposal work.

                  With the gradual effectiveness of the production capacity, steel and coal prices have risen rapidly this year, dubbed "Iron Man", "coal crazy"". Some coal and iron and steel enterprises said that the iron and steel coal market bullish, so that subsequent production capacity involved in the wait-and-see mood intensified enterprises.

                  An iron and steel enterprise from 2015 to 2017, the cumulative production capacity Yajian 530 thousand tons of steel, 1 million 60 thousand tons of iron. The person in charge of the enterprise said that countries resolve the overcapacity is represent the general trend, but now the profit per ton rose sharply, the industry for some time in the future is expected.

                  In addition, a provincial development and Reform Commission relevant responsible person said, at present the province steadily overcapacity exit, constantly improve the policy system, the follow-up work in place, but due to the local steel industry are mostly private enterprises, and is the production capacity is not compliance, basically will exit. In addition to the steel market prices continued to run high, the iron and steel enterprises benefit level further increase, resulting in widespread iron and steel enterprises do not want to retire, refused to retreat phenomenon. Even those who have committed to withdraw from production capacity, a small number of holding a wait-and-see attitude.

                  For the above situation, the industry suggested from three aspects, enhance the enterprise to resolve excess capacity, active transformation and upgrading of enthusiasm, rich local government regulation, disposal work.

                  First of all, improve the iron and steel coal production capacity supporting policies. In view of the current enterprise commonly held to the capacity of the "opportunity cost" is too high to find ways to protect capacity etc., advised the government to further strengthen incentive mechanism to resolve the transformation and upgrading of corporate debt; the actual market, increase the elimination of backward steel industry standards, strengthening of steel and coal production and environmental protection, energy consumption inspection, guide the market concentration of the industry to enhance the degree of national unity; to build a public service platform, to build capacity replacement index information and trading platform, clear rules for the implementation of restructuring, reduction reduction replacement, lifting of the enterprise capacity to worry about.

                  Lin Yao, President of Anshan Iron and Steel Group Economic Development Research Institute, said that the recent sharp increase in the amount of scrap exports also needs attention. After calculation, all our land of steel steel production, will release 40 million tons to 50 million tons of scrap market space, the thickness of the thick heavy scrap for converter and electric arc furnace, so the market price is strong, but the suitable frequency furnace production of silicon steel sheets, thin material, reinforced block, iron and other materials scrap steel prices fell sharply, even unsalable phenomenon. It is necessary to study the corresponding policies to encourage and support the relevant types of scrap recycling, not only from the source compression land of steel raw materials for the production of space, but also to avoid the scrap exports further increased.

                  Secondly, we should enlarge the scope of the use of supplementary funds appropriately. Some grassroots cadres suggested that the state should make clear the actual use of the production capacity of the enterprise, and give the local appropriate allocation of funds in the allocation of supplementary funds. The proper placement of workers under the premise of special funds can be used to allow companies to repay the arrears, transformation and upgrading, promote the capacity to follow-up work smoothly.

                  Some iron and steel enterprises in Hebei province believe that the state should increase the amount of supplementary funds, in addition to properly resettled workers, but also to consider the start of enterprise transformation funds, through the placement of workers. At the same time, as soon as possible to shorten the time of bonus compensation funds, it is suggested that from the beginning of storage or dismantling equipment to grant bonus compensation funds.

                  Third, establish and improve the long-term mechanism of production capacity. A ten million ton coal mine of Inner Mongolia coal field Ordos said, should stabilize the current capacity regulation policy, strengthen policy prospective, flexibility. Especially before the heating season, the relevant departments should formulate policies in advance to release production capacity, ensure market supply balance and smooth coal prices, and prevent short supply and price ups and downs in the short term.

                  There are some grassroots cadres suggested that the current hit "ground of steel" production function mainly by around to resolve the overcapacity in office, but this is not a permanent establishment. Need quality supervision, environmental protection, safety supervision, industry and commerce, electricity and other departments to form a long-term mechanism to combat, from their respective functions of penalties against the land of steel, especially the power sector should electricity online monitoring, electric anomaly Mopai clues from the enterprise; at the same time will hit "ground of steel" as a long-term task, compaction governments at all levels and departments of responsibility, to establish a long-term mechanism to combat the "land of steel production.

                  In addition, insiders suggested that strengthening environmental protection supervision and compensation mechanism is the two important means to achieve industrial optimization and survival of the fittest while going to production capacity. Generally speaking, in the market boom period to strengthen environmental supervision, environmental protection play a "access threshold"; and in the market downturn, to strengthen the compensation to the exit, can reduce the "zombie" companies out of difficulty. This is also the market play forced mechanism, combining guidance effective means to promote the production capacity out of the.

                  The local government to assist the local steel industry to improve competitiveness, in addition to achieve a reasonable layout, clearing capacity, but also do product upgrades in this course, especially to industrial upgrading in the market economy period, in order to let the local steel industry has the ability to withstand market volatility in the future.

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