Last year, China's steel industry, eliminate backward production capacity achieved initial progress, the year a total of eliminating the backward steel-making capacity of nearly 40 million tons iron. Experts said the steel industry merger and reorganization is a win-win method of structural adjustment.
According to an official letter to the Ministry of introduction, last year China's entire annual production of steel 567.84 million tons, output growth of 13.5% over the previous year. Strong demand for domestic consumption, exports make up a substantial reduction pressure. Iron and steel enterprises last year, snapping a seven-month of losses, but the whole industry is still 28% of the enterprises in the red. Public letter to the Department believes that the current iron and steel industry is a surplus of contradictions are still prominent, and the difficulty of eliminating backward production capacity has increased.
Xu Xiangchun, senior steel analyst, said China is now the world's largest steel-producing countries. But now the number of steel really be too scattered. Backward production capacity occupies a large proportion. Originally iron and steel industry is a high energy consumption, high emission industries, because these backward production capacity exists, makes the resource utilization should be lower than some developed countries.
Xu Xiangchun that the solution to the current China's steel industry, industry concentration is low, backward production capacity and other major structural problems, mergers and reorganization is an important way. "If the access conditions in accordance with the steel industry is just a simple shut down and eliminated, it may for the local GDP, financial revenue and employment will have larger negative effects, so if through mergers and reorganizations, a smooth transition, so that these enterprises to conform to the industrial potential entry conditions, access to health development, which could be a win-win result. "Xu Xiangchun said.
