“No to a simple expansion of production capacity steel project” and “rectification of iron ore import market order” is written to the steel restructuring and revitalization of the industry expected a little bit beyond. CITIC Securities analyst Zhou Xi by iron and steel, said the revitalization plan is actually a continuation of the steel industry policy, ensuring the overall steel demand and cost control is positive.
State Council executive meeting stressed that the steel industry restructuring and revitalization must be to control the total elimination of backwardness, the joint reorganization, transformation, optimization of layout for the focus to promote the steel industry, from big to strong. This industrial policy is the same strain. Anshan Iron and Steel Group, the situation in the steel business, said the forum made it clear, hope to overcome in the consolidation and reorganization of local protectionism and completely eliminate backward production capacity, Bu Neng to Zhexie backward production capacity in the market situation when a good revival.
From 2007, the State raised several steel products export tariffs in order to control steel exports, most of the products have been exported from the export tax rebate into a tax. But the first time the steel planning and flexible implementation of appropriate export tax policy, stable international market share. Zhou Xi growth that this state want to maintain export competitiveness of steel embodiment. China Steel Industry Association executive vice president Luo said China’s steel export controls 10% of the total amount is reasonable, the Chinese iron and steel must also participate in international competition.
2008, China’s steel exports to drop abruptly, and therefore announced the cancellation of the fourth quarter of the national iron and steel export tax from January 1, 2009 started as a way to boost steel exports. However, a substantial decline in foreign demand, supply and demand fundamentals remain unchanged, steel exports have greatly improved within a short time is difficult.
For the implementation of measures to expand domestic demand, stimulate domestic steel consumption, has high hopes for iron and steel enterprises, Anshan, Wuhan and other business arrangements for this year’s production plan in both output growth, while also based on the national policy to stimulate domestic demand of steel demand in the second quarter rebound judge. Hebei Iron and Steel Group, said that if the domestic fixed asset investment increased 20% to be implemented in the second half of the steel will be significantly driven a number.
The plan to strictly control the total iron and steel, eliminate backward production capacity, not to a simple expansion of production capacity of steel projects.
Currently Baosteel, Wuhan Iron and Steel in the coastal areas of Guangdong and Guangxi, the project proposed 10 million tons are in the province as a prerequisite for eliminating backward production capacity, which is to be out of Guangdong Province, more than 700 million tons of capacity. The Iron and Steel Group, Shandong Rizhao coastal steel project proposed is to eliminate backward production capacity of the primary task of the province. It is reported that industrial policy had required 300 cubic meters blast furnace production the following backward elimination of the standard required in the planning will increase the minimum settled may be 400 cubic meters. Experts said the planned elimination of backward production capacity engage across the board, but different products for different business structures and technical standards to determine, some companies may even have to 800 cubic meters of the blast furnace out, which is on the industrial policy of the revised and improved. At the same time, but also limit the scale of growth, the establishment of backward production capacity of the exit mechanism, funded by the central and local compensation, government supervision.
China Metallurgical Industrial Planning for a new vice president of Lee Chong said that this year the domestic steel industry merger and reorganization will definitely speed up. CITIC Securities analyst Zhou Xi by the view that investment in infrastructure in the central budget shall be allocated special funds to encourage technological progress for the Chinese steel industry, steel industry plays an important role to upgrade.
The cost of iron ore has been deeply troubled by China’s steel companies may usher in a better market environment for raw materials. At present, China’s external dependence on iron ore, iron and steel industry more than 50%, three international mining giants control 70% of the seaborne iron ore, iron ore price rise for five consecutive years of making iron and steel enterprises in China can not grasp the initiative.
Maanshan Iron & Steel official said, rectify market order on imports of iron ore and steel mills iron ore price negotiations, cost control will have a positive effect.
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