Ministry of Industry and Information Technology: continue to promote the merger and reorganization of the steel industry in 2017


On March 1, the Ministry of Industry and Information Technology released the operation of the iron and steel industry in 2016 and the outlook for 2017, clearly proposing that the iron and steel overcapacity reduction work in 2017 will be more market-oriented and legalized, with "local strip steel" as the top priority of capacity exit, and resolutely and thoroughly ban "local strip steel" illegal capacity according to law. The merger and reorganization of the steel industry will be further promoted.
It is understood that in 2016, as the first year of resolving the overcapacity of iron and steel, the iron and steel industry deeply promoted the supply side structural reform, and resolved the crude steel production capacity of more than 65 million tons, exceeding the original target of 45 million tons of crude steel production capacity. However, with the promotion of iron and steel capacity reduction and the recovery of market demand, steel prices have risen in shock, and China's iron and steel industry has turned losses into profits. The key statistics are that iron and steel enterprises have achieved sales revenue of 2.8 trillion yuan, down 1.8% year on year; The accumulated profit was 30.378 billion yuan, compared with a loss of 77.938 billion yuan in the same period last year, and the profit increased by more than 100 billion yuan.
The relevant person in charge of the Ministry of Industry and Information Technology said that although the iron and steel overcapacity work has achieved phased results, the pattern of overcapacity has not changed fundamentally, and the vicious competition in the industry is still fierce. At present, the concentration of China's iron and steel industry is still low, still at the low level in the past decade. In addition, the persistent diseases of the steel industry, such as "Ditiao Steel", still seriously disrupt the steel market environment.
To this end, the Ministry of Industry and Information Technology proposed that in 2017, it will take the "ground bar steel" as the top priority of capacity withdrawal, resolutely and thoroughly ban the illegal and illegal production capacity of "ground bar steel" according to law, ensure that it is comprehensively banned by the end of June 2017, and standardize the production and operation order of the steel industry. Substantial progress will also be made in the reduction, merger and reorganization of the steel industry with the main task of improving the quality brand and integrating regional resources. With the continuous promotion of national capacity reduction, the steel production capacity will further concentrate on the advantageous enterprises, and the industrial concentration will be improved.
As China's economic growth has shifted from high speed growth to medium high speed growth, the economic development mode has shifted from extensive growth of scale and speed to intensive growth of quality and efficiency, and the economic structure has shifted from the focus on incremental capacity expansion to the deep adjustment of stock adjustment and coexistence of optimization and increment, the demand intensity for steel in traditional manufacturing, real estate and other industries will decline, and the demand for steel in high-end manufacturing and emerging industries will increase. In general, The steel demand is expected to remain stable and grow slightly in 2017.