At the same time that the steel backward production capacity index was “overweight†this year, domestic steel production continued to increase. “In the first half of the year, the country’s crude steel output was 350 million tons, up 9.6% year-on-year. According to this calculation, the annual crude steel output will reach 706 million tons.†Zhu Jimin, president of China Iron and Steel Association, recently revealed the iron and steel industry in the first half of the year. The current steel industry has a large output and low profit margins. After half a year, the latest forecast of China Steel Association's annual crude steel output far exceeds the estimated 660 million tons at the beginning of the year, which is not unrelated to the progress and target requirements for eliminating backward steel production capacity. "The demand and market for long products this year is better than that of the plate. Enterprises have money to make money. Because it is not the last year of the '11th Five-Year Plan' as last year, local governments have little pressure on energy conservation and emission reduction targets, and naturally promote the elimination. The power behind is not big." A private steel company management frankly told the "First Financial Daily" reporter. Such a statement coincides with a recent report by the Ministry of Industry and Information Technology and the National Development and Reform Commission. According to the report, the current situation of energy conservation and emission reduction and elimination of backward production capacity is very serious. There is a gap between the progress of eliminating backward production capacity and the requirements for achieving the annual target and tasks. The task of the last four months is rather arduous. Just in July this year, the Ministry of Industry and Information Technology announced a list of new iron-making enterprises that eliminated backward production capacity in 2011. Compared with the target of eliminating 6.65 million tons of backward production capacity in 2011, the Ministry of Industry and Information Technology issued a new target in July. The number of eliminated iron and steel production capacity in the country has increased significantly, reaching 31.22 million tons. What is embarrassing, however, is that with the elimination of backward indicators, it is increasing crude steel production. Since the beginning of this year, the average daily output of domestic crude steel has remained high. In late June, it even broke through 2 million tons, the highest in history. This figure fell back in July due to factors such as power cuts. It began to rebound and rebound. “The crude steel output has increased since the middle of August, mainly because steel prices have shown an upward trend since July, and some varieties have better profitability, which stimulates steel mill production.†Hu Yanping, an analyst at China United Steel, told reporters that some varieties For example, high-line, welded pipe, hot-rolled strip and billet hit a new high in the middle of August. The industrial materials represented by hot rolling also improved, and the price showed an upward trend. The rise in steel prices has also made the steel mills still profitable overall. Among them, the construction steel products ( 4906 , -13.00 , -0.26% ) have more profitable varieties. For example, the profit of steel slabs of private enterprises in Tangshan is about 300 yuan/ton. Gross profit remained at RMB 400/ton. An industry insider analyzed that because private enterprises mainly produce long products such as construction steel, the profitability of long products is better, which means that private steel enterprises are more profitable than state-owned enterprises, and in the list of enterprises that have been eliminated by the state, Or private enterprises account for the majority, which creates a contradiction between the backward elimination of the administrative level and the real demand of the market. In addition to the lack of power of steel companies themselves to eliminate backwardness, local governments that have oversight and promotion obligations to eliminate backwards are equally under pressure. Especially for some local governments, the steel industry is also an important support for local GDP and employment. Li Xinchuang, dean of the Metallurgical Industry Planning and Research Institute, also told reporters that it is not an easy task to eliminate backwardness. The resulting series of problems require specific compensation measures. For example, how to eliminate the assets and debts of enterprises, how to resettle the employment of surplus personnel, and how to ensure social stability. In addition, while promoting the elimination of backwardness, it is also important for the government to guide industrial upgrading and withdraw funds to invest in emerging industries and high-end products.
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