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China steel excess capacity scale or continued to escalate

Recently, the national development and reform commission's disclosure by approved by the guangxi fangcheng port, guangdong zhanjiang, shougang moved three steel steel project, among them, guangxi fangcheng port and guangdong zhanjiang two steel base of the total investment is more than 130 billion yuan. The author thought of that zhang zhan jiang city mayor WangZhongBing holding the approval document "deeply kiss still spread mo xiang is searching stealthily approval approval" picture, very deep impression, just, for these new batch of steel project what is in control capacity, or on the high level repeated construction? Outside there are different views.
 
For productivity, we know, our country is still belongs to steel capacity of excess. 27, sinosteel association internal statistics show that mid-may key steel enterprise crude steel average daily output of 1.6921 million tons, down 0.35% last November. The national estimate average daily production 2.0395 million tons of crude steel and ten-day annulus comparing fell by 0.25%, crude steel production from record high bit. Steel price in May of continuous drop let steel production enthusiasm is abate, crude steel production back slightly, but it is still difficult to ease the steel of the present situation of the long-term face supply exceeds demand. Recently approved for new steel project, although all is the premise of compressed steel capacity, but to whether it can control steel capacity, the existence questioned.
 
We know, since the start, in order to control the steel capacity, the Chinese government will perform three years of the steel industry in new projects of the strict controls. And the industry layout and adjustment still face a dilemma, adjusting and not adjusted, capacity and the contradiction of the resources, the contradiction of the excess capacity to very entanglements.
 
Coordinate company vice LiZhongJuan industry inspector in "steel industry layout optimization and structure adjustment project work" on said, "1025" period is China's steel and iron industry increase of structure adjustment of the opportune time, excess capacity for total control and adjust the structure provides market environment. Wuhan, baosteel project is actually in use advanced productivity replacement behind productivity, more than a simple mount new project. The two projects are guangdong, guangxi and other steel consumption province, facing southeast coastal and southeast Asia market, and has huge advantages of location. Now a large steel consumption in the southeast coast of China, but from north China to transport goods, big into big out, cause the logistics cost is high, unreasonable, so the program also have the necessity of existence.
 
But China is now the world's first big steel producer. According to the metallurgical industry planning institute data, by the end of 2011, China's crude steel production capacity has reached 900 million tons. Since 2005, construction of 357 million tons of production capacity, not according to stipulations approval obtained national accounts for 79%. In the iron and steel industry excess capacity and enterprise benefit small profit right now, who can say these projects essence is not the repetitive construction at a high level?
 
But, and some say, the project construction period for three years or so, for a very long time won't form capacity, and the project after the production of China's steel may have finished behind productivity knocked out, may not necessarily excess. The most important is the two larger project approval is based on displacement capacity in the conditions of off, so as long as replacement productivity effect, for Chinese steel industry overall productivity effect is to "good". Just, for the final executive ability how, not to know well.
 
Taken together, the three years on the ban on new projects shall not, really let many areas of humbled not line, you can't say that these new batch of project is bad, backward production in what circumstances are necessary, but, the project has its advantages and disadvantages, new add project must carry out to just go, or it may lead to further increase the productivity, increasing the total surplus, and there is in distress situation.




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