Faced with the continuous rise in the price of steel and cement, the Ministry of Industry and Information Technology issued a notice on November 29 to prevent the backward production capacity from reviving the name of rising prices and re-emphasizing the determination to curb backward production capacity.
A few days ago, some agencies issued a report saying that under the stimulus of the government's 4 trillion yuan investment policy in 2009, China's crude steel output is expected to exceed 650 million tons in 2011. On the one hand, the market is in strong demand, and on the other hand, it is the goal of energy conservation and emission reduction. Experts bluntly, it is only a matter of expediency to suppress and eliminate backward production capacity through administrative means. To eliminate backward production capacity, it is necessary to comprehensively apply laws, economy, technology and necessary administrative means, and must operate according to law and sentiment.
Contradiction between capacity demand and policy objectives
According to a survey by reporters, prices of steel, cement and non-ferrous metals have risen sharply. Taking cement as an example, this year, the power cuts began, and the national cement prices were generally higher. Liu Zuoyi, deputy secretary general of the China Cement Association, said that the fourth quarter is the peak season for the cement industry, but this year the situation is completely opposite. At the same time, the price of cement in many places has reached a record high. Since the implementation of power cuts in August, the national average price of cement has increased by 5.64% and 6.15% respectively year-on-year, and prices are expected to remain high in the fourth quarter.
In addition, the price of steel continues to rise. As of November 22, the average price of domestic 25mm rebar is 4,484 yuan / ton, up 257 yuan / ton over the same period of last month; the average price of domestic 6.5mm high line is 4,585 yuan / ton , up 253 yuan / ton over the same period last month. The industry believes that on the one hand, power cuts and production cuts pushed up the prices of bulk products such as steel and cement. On the other hand, the sharp increase in the price of raw materials, coal, also increased the cost of enterprises.
On November 29, the Ministry of Industry and Information Technology issued a notice clearly stating that it is necessary to actively carry out work in accordance with the principle of “different treatment, protection and pressure†and resolutely curb the unreasonable energy demand of some energy-intensive enterprises that fail to meet the standards of energy conservation and environmental protection. "Preventing some outdated production capacity that has been shut down is driven by the benefits, consolidating energy conservation and emission reduction and eliminating backward effects."
According to the reporter's understanding, there are more than 1,000 small and medium-sized steel enterprises in China, and it is impossible to make all the featured products. Moreover, most small and medium-sized steel enterprises are facing a crisis of survival and do not have sufficient funds and technical strength to carry out strategic transformation and product upgrading. Even if they are on high value-added steel projects, they may not be competitors of large steel companies. Then, how can small and medium-sized steel enterprises, which are not well funded by these funds, realize the transformation of backward production capacity in the brutal competition?
Industrial upgrading and cost control contradiction
In April this year, the "Notice of the State Council on Further Strengthening the Work of Eliminating Backward Capacity" was issued, and the notice clearly increased efforts to eliminate backward production capacity in industries such as electricity, steel, building materials, electrolytic aluminum, ferroalloy, calcium carbide, coke, coal, and flat glass. But at present, the situation is not optimistic.
“At present, industrial energy consumption accounts for more than 70% of China's total energy consumption. It is a key area for energy conservation and emission reduction. But is energy conservation and emission reduction a departure from the factory?†Song Huawei, a market analyst at Puhua Consulting, was interviewed by the International Finance News reporter. It is said that whether it is to eliminate backward production capacity or the price of products, it is actually the market that has the final say. Administrative means are only expedient measures. In the end, it is still necessary to optimize the production capacity by the market, and the price is also discovered by the market. Moreover, backward production enterprises are not without merit. Its land resources, management team and high-quality employees with various technologies are still likely to become valuable assets for advanced production projects.
“The reason why small steel mills and small coke ovens can survive is that there is demand in the market. I want to spend tens of millions on the blast furnace at the beginning. Who will pay for it? Who is the worker in the factory?†A cement factory in Nantong City, Jiangsu Province When the person in charge accepted an interview with the reporter of International Finance News, he complained that the cost of industrial upgrading could not be afforded by small enterprises like us. However, more than 300 people in the enterprise need to feed, we can only produce in the cracks. , strive to allow employees to have a guaranteed income.
Recently, an agency released a report saying that the government's 4 trillion yuan investment policy in 2009 is expected to exceed 650 million tons of China's crude steel output in 2011.
“As long as there is an order, we will produce it. At the same time, we will actively seek to update the energy-saving and emission-reducing equipment.†The person in charge of the above-mentioned company stressed that the company will be responsible for more than 300 employees, and will not easily close the factory to let employees leave.
“Removing outdated production capacity and establishing an effective exit mechanism will take at least 2-3 years.†Yan Weizhong, former chairman of the China Logistics Technology Association, bluntly stated that the elimination of backward production capacity requires a smooth transition from place to place, in the process of shutting down, stopping, moving, and turning. We must take into account the interests of local governments and small and medium-sized enterprises. Otherwise, there will be no support for the implementation of eliminating backward production capacity.
A few days ago, some agencies issued a report saying that under the stimulus of the government's 4 trillion yuan investment policy in 2009, China's crude steel output is expected to exceed 650 million tons in 2011. On the one hand, the market is in strong demand, and on the other hand, it is the goal of energy conservation and emission reduction. Experts bluntly, it is only a matter of expediency to suppress and eliminate backward production capacity through administrative means. To eliminate backward production capacity, it is necessary to comprehensively apply laws, economy, technology and necessary administrative means, and must operate according to law and sentiment.
Contradiction between capacity demand and policy objectives
According to a survey by reporters, prices of steel, cement and non-ferrous metals have risen sharply. Taking cement as an example, this year, the power cuts began, and the national cement prices were generally higher. Liu Zuoyi, deputy secretary general of the China Cement Association, said that the fourth quarter is the peak season for the cement industry, but this year the situation is completely opposite. At the same time, the price of cement in many places has reached a record high. Since the implementation of power cuts in August, the national average price of cement has increased by 5.64% and 6.15% respectively year-on-year, and prices are expected to remain high in the fourth quarter.
In addition, the price of steel continues to rise. As of November 22, the average price of domestic 25mm rebar is 4,484 yuan / ton, up 257 yuan / ton over the same period of last month; the average price of domestic 6.5mm high line is 4,585 yuan / ton , up 253 yuan / ton over the same period last month. The industry believes that on the one hand, power cuts and production cuts pushed up the prices of bulk products such as steel and cement. On the other hand, the sharp increase in the price of raw materials, coal, also increased the cost of enterprises.
On November 29, the Ministry of Industry and Information Technology issued a notice clearly stating that it is necessary to actively carry out work in accordance with the principle of “different treatment, protection and pressure†and resolutely curb the unreasonable energy demand of some energy-intensive enterprises that fail to meet the standards of energy conservation and environmental protection. "Preventing some outdated production capacity that has been shut down is driven by the benefits, consolidating energy conservation and emission reduction and eliminating backward effects."
According to the reporter's understanding, there are more than 1,000 small and medium-sized steel enterprises in China, and it is impossible to make all the featured products. Moreover, most small and medium-sized steel enterprises are facing a crisis of survival and do not have sufficient funds and technical strength to carry out strategic transformation and product upgrading. Even if they are on high value-added steel projects, they may not be competitors of large steel companies. Then, how can small and medium-sized steel enterprises, which are not well funded by these funds, realize the transformation of backward production capacity in the brutal competition?
Industrial upgrading and cost control contradiction
In April this year, the "Notice of the State Council on Further Strengthening the Work of Eliminating Backward Capacity" was issued, and the notice clearly increased efforts to eliminate backward production capacity in industries such as electricity, steel, building materials, electrolytic aluminum, ferroalloy, calcium carbide, coke, coal, and flat glass. But at present, the situation is not optimistic.
“At present, industrial energy consumption accounts for more than 70% of China's total energy consumption. It is a key area for energy conservation and emission reduction. But is energy conservation and emission reduction a departure from the factory?†Song Huawei, a market analyst at Puhua Consulting, was interviewed by the International Finance News reporter. It is said that whether it is to eliminate backward production capacity or the price of products, it is actually the market that has the final say. Administrative means are only expedient measures. In the end, it is still necessary to optimize the production capacity by the market, and the price is also discovered by the market. Moreover, backward production enterprises are not without merit. Its land resources, management team and high-quality employees with various technologies are still likely to become valuable assets for advanced production projects.
“The reason why small steel mills and small coke ovens can survive is that there is demand in the market. I want to spend tens of millions on the blast furnace at the beginning. Who will pay for it? Who is the worker in the factory?†A cement factory in Nantong City, Jiangsu Province When the person in charge accepted an interview with the reporter of International Finance News, he complained that the cost of industrial upgrading could not be afforded by small enterprises like us. However, more than 300 people in the enterprise need to feed, we can only produce in the cracks. , strive to allow employees to have a guaranteed income.
Recently, an agency released a report saying that the government's 4 trillion yuan investment policy in 2009 is expected to exceed 650 million tons of China's crude steel output in 2011.
“As long as there is an order, we will produce it. At the same time, we will actively seek to update the energy-saving and emission-reducing equipment.†The person in charge of the above-mentioned company stressed that the company will be responsible for more than 300 employees, and will not easily close the factory to let employees leave.
“Removing outdated production capacity and establishing an effective exit mechanism will take at least 2-3 years.†Yan Weizhong, former chairman of the China Logistics Technology Association, bluntly stated that the elimination of backward production capacity requires a smooth transition from place to place, in the process of shutting down, stopping, moving, and turning. We must take into account the interests of local governments and small and medium-sized enterprises. Otherwise, there will be no support for the implementation of eliminating backward production capacity.
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