Reducing crude steel output is an active action of the industry to adapt to the change of market demand

On July 28, the China iron and steel association, the sixth member congress second meeting, President of the office during the meeting, the relevant person in charge of steel association planning development in view of the iron and steel production capacity to "look back" and reduce crude steel production work has carried on the special report, the relevant state departments and steel association's related work, iron and steel production capacity to "look back" and certain problems arising from the work done,Some suggestions for the next work are put forward.

We will cooperate with relevant ministries and commissions to cut overcapacity and reduce output

As early as early January this year, the Steel Association began to cooperate with relevant departments to study and formulate the steel capacity reduction "look back" inspection, and the production reduction work put forward not to engage in "one size fits all" specific recommendations.

In the process of the above work, CISA actively cooperated with the formulation and revision of various policies such as strict control of new capacity, capacity replacement and project filing.After the release of the new "steel industry capacity replacement implementation Measures", THE steel association timely organized the local competent departments to hold a publicity and implementation meeting.Csaa studied and sorted out more than 100 reporting clues collected on the reporting platform, and provided them to the inspection team as important inspection contents for "looking back". Csaa completed policy compilation and policy guidance, and organized and assisted in training more than 50 industry experts to participate in the special inspection work.

At the same time, CISA took the initiative to communicate with the president and vice president units, solicit opinions from some steel enterprises, actively reflect the demands of enterprises, and timely inform and discuss related issues to the president units according to the grasped situation.According to the feedback of the enterprises, the policy suggestions of "three limits and two limits" were put forward, and the policy suggestions of reducing output, import and export, and increasing the development of domestic resources were fed back to the national decision-making departments for many times, which were valued and partially adopted by the relevant ministries and commissions.

The task of reducing production requires the joint efforts of all parties to achieve good results.

"At present, nine inspection teams have been formed by various ministries and industry experts to carry out on-site inspections in 29 provinces (municipalities directly under the Central Government and autonomous regions) nationwide, and some problems have been found in the process, and rectification is being actively implemented."The person in charge said.

In the first half of this year, China's crude steel production reached 563 million tons, an increase of about 60 million tons year-on-year.In the annual production reduction task will be concentrated in the second half of the year to complete at the same time, the gap between steel supply and demand in the second half of the year through a substantial increase in net imports of crude steel, reduce steel exports and other measures to make up for the task is very difficult.How to ensure the stability of domestic steel prices, in the reduction of output work "not to report false number" and fair to the enterprise is a big challenge."At present, provinces (municipalities directly under the Central Government, autonomous regions) and central enterprises have begun to implement production reduction related work, but from the inspection process to understand that most enterprises are still in the work start stage, grassroots and enterprises on the production reduction work still exist wait-and-see sentiment.""At present, cISA is organizing a study on the balance of demand, production, import and export after the reduction of output in the second half of the year," the official said.

Accelerate research on measures to ensure fair and equitable reduction of production

At present, the whole industry is highly concerned about the production reduction work, some member enterprises have put forward to avoid "one size fits-all", ensure that all market entities are fair and just, optimize the steel production limit policy, strengthen the research and judgment of market trends after production reduction and other suggestions.

The person in charge of the next step of steel production capacity "look back" and cut output work put forward suggestions:

First, we will work to reduce production in an orderly manner and move it in a favorable direction.Steel overcapacity "looking back" and the reduction of output work is a strategic decision made by the country after the overall balance, which is conducive to maintaining the balance between supply and demand of resources."A good balance is conducive to lower iron ore prices;Get the balance wrong and it can backfire.The key to the whole industry 'a game of chess' to avoid a significant increase in steel prices."

At present, the active production cut when the market is running at a high level is different from the passive production cut when the whole industry lost money in 2015.Comprehensive downstream industry demand situation in the second half of the year, while taking into account last year's steel demand before low after high, steel demand in the second half of this year may be reduced, the production is also the whole industry to adapt to market demand changes as the initiative.The person in charge suggested that the vast number of steel enterprises to take the initiative to adapt, carefully arrange, mutual supervision, timely reflect the problems and difficulties encountered, pay close attention to iron ore price trends, to ensure that steel prices within a reasonable range.

Second, iron and steel enterprises should actively do a good job of reducing output related work.First of all, iron and steel enterprises should take the initiative to adapt to the new situation, according to the production reduction requirements of reasonable arrangements to adjust the use of equipment and maintenance, mainly to limit the iron output to achieve the purpose of steel.Second, steel enterprises in the reduction of output at the same time, to cut production information to the public in a timely manner, guide the iron ore market expectations and maintain a stable market supply and demand.Third, iron and steel enterprises should adhere to cost reduction and efficiency, maintain reasonable and stable market prices, improve the proportion of direct selling, prevent speculation, avoid price fluctuations, and jointly maintain the smooth operation of the upstream and downstream of the industry.Finally, iron and steel enterprises to strengthen the industry self-discipline, the starting point and the goal of meeting domestic demand, further control of steel exports, no longer export of general products, only to maintain a small number of high-tech content, high value-added products export.

Third, pay close attention to the operation of the industry and put forward suggestions in time.First of all, the national level should further strengthen the guidance of the implementation of production restriction policies in provinces (municipalities directly under the Central Government and autonomous regions), and ensure that the production of illegal production capacity, high pollution capacity, high energy consumption capacity production is the focus of production reduction;At the same time, we will further strengthen demand side management, and introduce measures to maintain the balance and stability of demand intensity and demand rhythm of downstream industries.Secondly, CISA will strengthen research, organize and hold symposia between steel enterprises and downstream industries, timely understand and study the implementation of production reduction and expected results.Third, actively study to ensure that the reduction of output fair and just measures;Analyze the change of "steel ratio" of provinces (municipalities directly under the Central Government, autonomous regions) and enterprises on a monthly basis, study and judge the increase and decrease of the actual production of crude steel in different regions and enterprises, reduce the occurrence of fraud, and coordinate with the relevant departments of the state to organize spot check timely.Finally, CISA will strengthen market monitoring, timely release and analysis of crude steel production, steel inventory, steel prices, iron ore prices and downstream industry operations and other data, to promote the smooth operation and high-quality development of the steel industry.