2017 Has a Long Way to Reduce Capacity

The state council information office will held a press conference reference of leading the economic development of the new normal and deepening the reform of the supply side , director of the national development and reform commission, said in 2017 the requirements of reducing the production capacity will be higher, the pressure will be greater. As a LSAW steel pipe, DSAW steel pipe, 3 PE anticorrosive coating pipe and other mild steel pipe products production services vendors, Shinestar group has been very attention to reducing capacity. Shinestar steel research institute believes that have a long way to go to the process of reducing production capacity, have pressure to just have power.

In 2016, during the process of reducing production capacity ,we encounter many new problems and new situations, such as the contradiction between supply and demand, price fluctuations,etc. Price is an important indicator of the baton role is very important for the supply and demand.

At the beginning of 2016 ,steel price index is only about 60, in the second half of 2016,the price index rose to 100, the price also have a substantial rise. Line, rebar, cold rolled sheet, plate steel, at the beginning of the year the price also is little more than 2200 yuan per ton, 3800 yuan by the?end of the year. At the beginning of bohai sea power coal prices index, 370 yuan per ton, in the second half once topped 680 yuan, fluctuates up and down at the end of this year or in 600 yuan per ton.

Shinestar steel institute think about it, one is the inventory of the cover, because the economic operation is smooth, enterprises need to cover the inventory; Second, active reduce production, steel and coal enterprise according to the demand of production capacity to compress the output; Third is the ultra falls, is the economic slowdown when price down; Forth is policy expectations, everyone think efforts in increasing capacity, may reduce the supply, prices are likely to pick up. But overall, the supply and demand fundamentals have no fundamental change, price fluctuation is a comprehensive result of short-term factors, it also can meet the demand of economic stability good, increasing trend.

There are some more complex factors affecting price fluctuation, such as electricity, road, rail capacity, etc. For this kind of situation, the national development and reform commission together with relevant departments, trade associations, etc adopted measures: the first is the orderly release efficient advanced capacity, increase production. The second is to guide coal with coal enterprises signed a long-term agreement or contract, change its way to trade, it also play a positive role. The third is the specification of coal price index of compiling and publishing. The fourth is a specification of coal distribution activity, strengthen the security of railway transportation.

Relevant departments are making 2017 plan of steel coal reducing production capacity, sciencely making mission objectives. To further strengthen the safety standards and backward production capacity standards, "zombie" companies must as a "key", speed up from the closure.

China's steel industry should have deep understanding to the importance of capacity, change thinking methods, deepen the reform of the supply side. As steel whole service in the field of enterprise, Shinestar group will do a good job in the lead, to speed up the transformation and upgrading, strive to produce high quality LSAW steel pipe, 3 PE anticorrosive coating steel pipe, large diameter DSAW steel pipe, and other products, for the healthy and stable development of iron and steel industry efforts.
 Date:2017-02-10 16:59:55


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