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In 2018, the steel industry will fully implement the reduction of replacement

In 2018, the steel industry will fully implement the reduction of replacement

In 2018, the steel industry will fully implement the reduction of replacement

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  • Time of issue:2019-05-30 14:37

(Summary description)In 2018, the steel industry will fully implement the reduction of replacement

In 2018, the steel industry will fully implement the reduction of replacement

(Summary description)In 2018, the steel industry will fully implement the reduction of replacement

  • Categories:News
  • Author:
  • Origin:
  • Time of issue:2019-05-30 14:37
  • Views:1
Information

One problem facing the steel industry today is mainly overcapacity. It is understood that the steel industry will fully implement the reduction of replacement in 2018. The new capacity must be less than the elimination of production capacity. Experts expect that this will not have a big impact on the price of steel.

 

According to reports, capacity replacement refers to the elimination of certain backward or excess capacity when building a certain capacity project. This is an effective way to control the total capacity. The Ministry of Industry and Information Technology announced yesterday (8th) the revised "Measures for the Implementation of Capacity Replacement in the Steel Industry". The method is clear. The steel industry will implement a full-scale reduction in the future, that is to say, the new production capacity will be less than the elimination of production capacity.

 

The revised “Implementation Measures for Capacity Replacement in the Steel Industry” clarifies that in the future, regardless of whether the construction project is newly built, rebuilt or expanded, or “overhauled in different places”, as long as it involves the construction of ironmaking and steelmaking smelting equipment, capacity replacement must be carried out.

 

The capacity that can be used for replacement must be legally and legally built. However, the six types of production capacity, including the production capacity, the exit capacity, the “strip steel” capacity, the backward production capacity, the capacity of the main equipment that has been dismantled, and the capacity of the smelting equipment in the non-steel industry, shall not be used for replacement. Xu Wenli, director of the Iron and Steel Division of the Raw Materials Industry Department of the Ministry of Industry and Information Technology, said that the method also standardized the calculation of the replacement ratio to avoid the phenomenon of playing "digital games."

 

Xu Wenli said: "In the past, one equipment corresponds to two kinds of production capacity, one is the production capacity of Pu Steel and the other is the special steel production capacity. When the local implementation, there may be a problem of mixed conversion between Pu Steel and Special Steel. There may be some operations. Vulnerabilities. Therefore, in the new method, the problem of mutual conversion between the unified furnace and the special steel and the special steel was canceled, and the adjustment was made to the unified conversion number. In this way, a ruler can be achieved."

 

From a regional perspective, the approach further tightens the replacement ratio requirement. Qin Song, deputy director of the Science and Technology and Environmental Protection Department of China Iron and Steel Association, said: "The replacement ratio of environmentally sensitive areas such as Beijing-Tianjin-Hebei, Yangtze River Delta and Pearl River Delta should continue to be implemented at a minimum of 1.25:1. Other regions are adjusted by equal replacement. Quantity replacement. At the same time, it is encouraged to promote the structural adjustment of the steel industry in combination with the actual implementation of stricter replacement ratio requirements."

 

In other words, the steel industry will implement a full-scale replacement in the future. Of course, in order to encourage and support the short-flow steelmaking of electric furnaces with obvious advantages in energy conservation and emission reduction, the method proposes that the electric furnaces that exit the converter construction can be replaced in equal amounts.

 

It is worth noting that in the future, as long as new steel projects are built, all of them must take the channel of capacity replacement, and the replacement capacity can also be transferred and traded across provinces. For example, a province wants to launch some steel projects, but the province's available capacity for replacement is not enough to buy replacement capacity from other provinces. However, Xu Wenli said that provinces and cities with greater environmental protection pressure cannot afford capacity. “The State Council has proposed the total steel production capacity control targets for Tianjin, Hebei and Shandong provinces, and the provinces (autonomous regions and municipalities) that have not completed the total steel production capacity control target, and cannot accept the production capacity of other regions. In areas where the target is controlled, when undertaking production capacity in other regions, we must resolutely hold the bottom line that does not break through the regional total capacity control target."

 

The reduction of replacement will further reduce the total steel production capacity, which will also attract attention. From the perspective of supply and demand, Qin Song does not have much influence on steel prices.

 

Qin Song pointed out: "Our production capacity is still excessive. In this context, steel prices have recently been adjusted back. Of course, fluctuations are also normal. The small environment is that the ex-factory price of steel is relatively stable, especially since we opened some time ago. The symposium of 11 downstream users will not be able to master the use of steel in real estate next year, and the rest will be relatively stable."

 

Source: China Enterprise Network

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