According to the profit margins of only 2.4% of the iron and steel industry last year, January-April this year, the margin declined further to 0.1%, actually had industry-wide losses in the first quarter. CISA has stated, at present already more than 900 million tons of steel production and consumption of less than 700 million tons of exports huge difference between, excess iron and steel industry in China has entered a stage of the year. But it was at this time, a total investment of over $ 130 billion worth of iron and steel base in Zhanjiang, Guangdong, and Guangxi fangchenggang steel base is falling market launched, industry to this debate. Why is "winter" season started of the items? it significance in the map of China's iron and steel industry? how to treat some people worry that would increase the problem of overcapacity? this newspaper interviewed some of the iron and steel industry and economic circles.
　　 CISA, Executive Deputy Secretary General Li Xin
　　 No need to talk about the iron and steel industry "left over" colour changes
　　 Current time is more special, serious overcapacity in China's iron and steel, but I feel no need to worry about Guangxi project may increase the production capacity. First of all, because the project is the premise of Guangdong and Guangxi provinces and backward steel production capacity of enterprises, and has offset steel shortage, Guangdong and Guangxi radiological market prospects good markets in Southeast Asia, opening up international market of high end plates and other advantages.
　　 Second, you don't need to "excess" turn pale at the only mention of sth. terrible. Because capacity is the market ready for the future. For example, in 2000 after the excess steel capacity, national rectification of the limited production of 100 million tons, China needs now is 700 million tons, if it has not developed in accordance with 100 million tonnes to China at that time, so the excess is the market demand has the final say. Guangxi and Guangdong projects must be at least three years before it can be put into operation, China's urbanization speed and speed can be a good way to digest all the excess capacity in infrastructure.
　　 There is concern that does this mean management to ease approval of new capacity in order to speed up the excess? in fact, three years before the Government had no members in private without stopping, new capacity at 60 million tons per year, and guide people to where constructs, the Government built what was good thing to prevent blind expansion of disorder. In General in China for new steel production project examination and approval will remain under strict control.
　　 Steel analyst
　　 Embodies the coastal iron and steel industry distribution adjustment
　　 Guangdong and Guangxi part will indeed increase production capacity after the project launched, we should also see its key role and significance in China's iron and steel industry is not a reasonable industrial layout. Layout of China's iron and steel industry in General, "light North-South" and "East-West less" feature, and the market itself has a huge demand of Guangdong and Guangxi, Hainan Island its own steel production capacity is almost zero. Taking into account water shortages in the domestic Mills location in layout of the city, now the 60% of China's iron ore imports from overseas factors such as the coast of Guangdong and Guangxi project layout, according to the Hong Kong plant, logistics costs, advantages, such as water resources, raw materials and finished products will significantly reduce transportation costs, is China's iron and steel industry adjustment and an important carrier of major projects.
　　 Secondly, the concentration of iron and steel industry in China is very low, as large enterprises as possible needs to be done, and small capacity so as to compress non-compliance and backward, Guangdong and Guangxi project is consistent with the product structure adjustment of expectations. Such as Fang Cheng gang: the project products are mainly for high-end sheet and still needs to rely on imports of high-end steel products in China, Zhanjiang projects are for cars, home appliances and other industries as well as pipeline steels, high quality carbon structural steel, the main culprits.
　　 In addition, Guangdong and Guangxi project is a historic strategic significance, it is consistent with trends in Peel, removal of iron from the city to the coastal, embodies the coastal layout adjustment policy of China's iron and steel industry.
　　 Well-known analyst
　　 Structure adjustment to bow to economic growth
　　 First time heard the two projects approved, really more surprising. Although the national development and Reform Commission also presented two projects are premised on steel compression capacity, but the target was completed, local government enforcement and effects of concern. China Steel will shift from structural excess of production capacity in full overflow.
　　 The two projects have long been on the agenda, but productivity has not been released due to compression, the approval has made people feel the Government structural adjustments and between stimulating economic growth, very reluctantly chose the latter, structural adjustments to bow to economic growth objectives.
　　 Shanghai day strong consulting, Chief Consultant Zhu Bo good
　　 Investment-led growth should be alert to go the old road
　　 Many iron and steel enterprises is difficult in itself, many iron and steel enterprises in the development of non-steel businesses, now at this point both on such a big project, does make people feel is an investment-led economic growth.
　　 Actually 4 trillion economic stimulus following the 2008 economic crisis, and to the negative effect of China's economy has not been digested, and if the future remained investment-led economic growth is negative for economic restructuring of the old road. It was after 4 trillion, China's economy bottomed out first in the world, after the Government put forward the adjustment of economic structure, if you encounter little difficulty now, then follow the beaten track is very worthy to be wary of. After the project is approved by the local Government of Zhanjiang fully illustrates this point.
　　 Government-led investment characteristics are only concerned with pulling the GDP, to solve the employment problem, as to how the benefits of the project are not considered within the scope of the Government. This old problem of China's economy, although the Government has made "Twelve-Five" are an important period of economic restructuring, but now apparently our economic structure is still lack of system security. Our people's livelihood inputs or insufficient, domestic consumption of old problems are still not resolved.



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