Access to iron and steel production to raise the threshold to eliminate backward production capacity will be largely
 
In accordance with the requirements of the new standards, the total sulfur dioxide emissions of the steel industry is expected to decline 30% -40% compared to 2010; This means that the existing steel and post on behalf of the built steel mills invested in environmental protection facilities will increase; if you can not meet the requirements , steel mills to be built will be difficult to get access to qualifications, while the existing steel mills will also face the burden of environmental protection facilities upgrade.
 
In the case of the integrity of the domestic steel industry to enter the stage of low profitability, most of the steel mills in the loss of the edge, the number of steel mills also have the ability to upgrade the existing environmental protection facilities, especially the poor financing capacity of small and medium-sized private steel plant is more difficult; probably only choose other corporate mergers, or stop environmental protection can not be the standard production line, this part of the production line is basically the main use of backward production capacity; means that the backward steel production in China can obtain a valid eliminated; of course, relevant departments in the ability to implement the specific implementation and supervision is the key to determining good or bad effects.
 
Merger and reorganization is expected to accelerate
 
For the promotion of the enforceability of the elimination of backward production capacity in the merger and reorganization of the iron and steel enterprises have some role in the promotion, but the difficulty still, relatively speaking; a current steel prices generally poor profitability fact, steel prices seems to be rather tense in terms of capital, corporate mergers should not be very positive; In addition, small and medium-sized steel enterprises in the new environmental standard is difficult to compliance, does not exclude these steel enterprises to take this opportunity to further urgent to expand the scale of the production line for the upcoming merger fight for more benefits, so will also cause the difficulty of mergers between enterprises.
 
Loss of the entire steel industry downturn, making steel enterprises in the capital side is very tight, and upgrade their environmental protection facilities at the same time, they come to spend huge amounts of money to mergers and the same failure of the production line, from the normal situation, the subjective intention is clearly not very strong; but I am pleased that the involvement of new environmental protection standards, the Government in supporting enterprise mergers and support will be obvious bias; determining steel prices against the market trend to incorporate the most important place; and it is clear in the next long period of time, steel prices you want to get new capacity approved is extremely unlikely to know Baosteel Zhanjiang project from application to approval took up to 13 years, not several enterprises can afford. In this regard, there are plans to expand the size of steel prices is inevitable only through mergers to achieve, so the involvement of new environmental standards, is likely to promote to eat a small pace of merger and reorganization to accelerate.



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