This Year Steel Cut Overcapacity Will Solve Potential Overcapacity
Break down the invalid supply. The steel production capacity will be reduced by about 30 million tons this year. March5,2018, Premier Li Keqiang has put more stringent requirements on capacity work in his government work report.
Steel data display, steel capacity substitution in 2017 has exploded. According to incomplete statistics, at present, nearly 40 steel enterprises capacity replacement schemes have been announced. It involves a new iron and steel production capacity of 45.66 million tons and steel production capacity of 52.9 million tons. Director of the futures research center of the research center for economic development of metallurgical industry- Li Yanjie thought, “The biggest problem this year is preventing increase new capacity in the name of capacity substitution. But the return of profits has indeed stimulated the urge to expand capacity again. It may also try to resume production in various forms, including 'ground steel'. New capacity can be built, but it must meet the relevant replacement conditions.”
Many steel industry people are optimistic about this year's production capacity work. They thought it can finished task in advance. Said one industry expert, who declined to be named, in 2018, there will be no more drastic action like last year. Stabilizing existing results is a matter of considerable importance. However, it remains to be seen how the 30 million tons of capacity should go.