Only ten days into 2017, there have been successive moves in terms of steel capacity reduction. After the "differential electricity price" started on January 1, the national development and Reform Commission and the Ministry of industry and information technology began to make moves on "Di Tiao steel".
On January 10, China Iron and Steel Industry Association held a council meeting. Lin nianxiu, deputy director of the national development and Reform Commission, and Xu Lejiang, Deputy Minister of the Ministry of work attended the meeting, and put forward a clear-cut proposal for steel capacity reduction. Among them, Lin nianxiu, deputy director of the national development and Reform Commission, put forward that it is a political task to remove all the strip steel before June 30, 2017. At present, 12 steering groups have been dispatched to work.
Since the end of 2016, when the regulation of "Di Tiao steel" began, all regions began to act with rare speed and efficiency. Sichuan, Jiangsu and other provinces and cities published their opinions on the treatment of "Di Tiao steel" at the end of December. At the same time, the severe punishment from the top to the bottom is also in progress. For example, at the end of last year, the rapid and severe treatment was given for the production and sales of "Di Tiao steel" by Huada Company in Jiangsu Province and Hebei Province, and the construction and construction of steel projects without approval by Anfeng company. 111 responsible persons and 27 responsible persons were held accountable respectively in the two provinces, and the vice governors of the two provinces were punished and ordered to Jiangsu Province's production and sales of "steel bars" for thorough renovation.
At the China Steel Council meeting held on June 10, the national development and Reform Commission put forward to clear all the "Di Tiao steel" before June 30, 2017, which raised it to a political task, and also showed the determination to clear the "Di Tiao steel" in an all-round way. Not only that, in addition to the "strip steel" which must be eliminated, advanced production capacity is not excluded. Xu Lejiang, Vice Minister of the Ministry of industry and information technology, said at the meeting that the removal of production capacity is not equal to the removal of backward production capacity. If necessary, advanced production capacity will also be removed. This is the blast furnace of Baosteel that was removed before. The final result of capacity reduction is to improve the layout of iron and steel industry. Lin nianxiu proposed that the upgrading of quality equipment should be completed by 2025.
Wang Guoqing, director of Lange Iron and Steel Research Center, said that the state's governance of medium frequency furnace and strip steel has been fully opened. Only through the strict implementation of relevant laws and regulations by national ministries and local governments, can the "strip steel" production enterprises and related equipment be completely removed. She said that at present, there are about 120 million tons of "strip steel" production capacity nationwide, which must be removed before June 30. This is a political task jointly proposed by the national development and Reform Commission and the Ministry of industry and information technology. In this way, for the steel industry, it will completely remove bad currency and create a better operating environment for enterprises. In the short term, the elimination of "Di Tiao steel" will also boost the market to a certain extent, and the full range of 10 black futures trading is the market's response. On the spot market, it also ended the recent decline trend. According to the data monitoring of the Lange steel cloud business platform, on January 10, the average price of domestic three-level screw steel was 3255 yuan per ton, up 23 yuan per day.
