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China Steel Association: a new model of the iron ore pricing is not included in the "Twelfth Five-Year Plan"

Number of visits: Date:2015-04-30

  "In the future iron ore pricing the new model will not be included in the 12th Five-Year Plan of steel." Recently, the China Iron and Steel Association (hereinafter referred to as "CISA"), executive vice president Luo said in an interview with reporters.
  At present, the China Steel Association is working with the Ministry of Industry and other relevant departments such as iron and steel industry "12th Five-Year planning work, and established the basic idea of ​​the steel industry in the" 12th Five-Year "period.
  Luo also told this reporter that the steel industry "12th Five-Year Plan will mainly focus on three key points to start are as follows: to speed up structural adjustment and industrial upgrading of the steel industry, China's iron and steel industry to grow stronger; strengthen industry mergers and consolidation and reorganization, increased industrial concentration, optimize the structure of industry management; further increase the industry, eliminate backward production capacity and energy savings.
Concentration is too low
  "21st Century": the development of China's iron and steel industry, what are deep-seated problems?
  Luo: these years, the development of China's steel industry is basically to meet our national economic and social development of the quality of steel products, species, the increasing number of requirements, has made a significant contribution to our national economy and social development.
  Certainly the development of China's steel industry has made great achievements, but also to see past a long time, due to the overall development of China's iron and steel industry is taking a scale expansion of the road, rely mainly on resources, energy consumption growing to support its development , while increasing total pollutant discharge of the whole society. In this development process, resulting in a series of deep-seated contradictions and problems affecting the development of China's iron and steel industry.
  First, the overall industry-wide overcapacity, high proportion of low levels of production. Annual Report of Statistics of China Steel Industry Association, the end of 2009, the whole industry in China's steel production is 718 million tons iron production capacity is 636 million tons, miscellaneous steel production capacity is 850 million tons, plus since 2010, investment in fixed assets and new The yield can the obvious contradiction between too fast.
  The contradictions exist in the second industry-wide enterprises are small and scattered, industry concentration is low. The end of 2008, statistics of the country's iron and steel enterprises, including mining up to 8012 dealers engaged in the iron and steel products Competition of the link of up to 100,000 or more. Overall, the enterprises of China's steel industry is highly fragmented state of my domestic steel output up to ten large iron and steel production of crude steel, after all these years of continuous efforts, the proportion of total production increased to 43.49% in 2009, accounting for However, showing the trend of modern, automated, large-scale development there is a big gap between the development of the global steel industry.
  The contradictions exist in the third industry-wide industrial layout unreasonable contradiction.
  The fourth problem is the industry-wide innovation, integrated innovation capability is not strong. Overall, the industry-wide advanced process technology, the technology of high-end products, we are still in the status quo rely mainly on imports and imitation.
  The fifth issue is the energy, resources, severe environmental constraints to the development of China's steel industry.
Strictly controls the production capacity
  "21st Century": "What is the fundamental task of the steel industry in the 12th Five-Year" period?
  Luo: "The fundamental task of the steel industry in the second Five-Year" period, accelerate the transformation of development mode, adjust and optimize the structure, to improve the variety, quality, and promote the upgrade of the industry-wide efforts to achieve the iron and steel industry from large to change.
  The face of the overall steel industry overcapacity obvious contradiction between the trend, it is necessary to strictly control excessive growth of production capacity and output, should adhere to the organization of production according to the needs of the domestic market focus to highlight the optimization varieties and improve quality, improve the quality of the operation of the whole industry and efficiency.
  From China's industrialization, urbanization, rising demand for such a feature of a multi-level and the domestic market in the optimization and adjustment of product structure of departure should not only focus on the optimal adjustment of sheet metal products, and also to focus on long products optimization and structural adjustment.
  From product sales model, the current large and medium-sized steel enterprises in China steel sales model Supplying approximately 34.56% in the total steel sales, distribution, accounting for 43.32%, accounted for 3.89 percent of retail branch sales accounted for 13.68%, exports accounted for 5.15%. Such a trend Overall, our sales model is relatively backward, steel producers from steel producers to service providers of the steel material changes in the market and the needs of users and provide quality service with users to establish long-term stable cooperative relations.
Accelerate the consolidation and reorganization
  "21st Century": the merger and reorganization of China's steel industry has been promoting the points, and how it will reflect in the "12th Five-Year Plan?
  Luo: It should be the actual departure from the steel industry, to speed up corporate mergers and consolidation and reorganization of the steel industry to improve the steel industry concentration, and optimal adjustment of the organizational structure of the industry-wide.
  Since 2010, significantly speeding up of iron and steel enterprises in terms of consolidation and reorganization. Production of crude steel up to ten iron and steel enterprise groups in January to October, total production of crude steel 2.4472 million tons, accounting for 46.61% of the total crude steel over the same period last year, the proportion of total production of crude steel of the national total 6.28 That is last year's industry-wide industrial concentration has been significantly improved.
  In the "12th Five-Year" period, China's steel industry consolidation and reorganization of key industry vertical integration and horizontal integration. Vertical integration is a large advantage enterprises, the formation of large enterprise groups, and give full play to the advantages of scale, and play the optimum allocation of resources role and productivity of the depth of the rational division of labor within the group to improve the international competitiveness of the domestic market, the enterprise group and excellent bigger and stronger.
  In addition, a consolidation and reorganization of the mode is longitudinal joint reorganization, including from the steel production process, extending to the upstream and downstream industry chain, and the upstream and downstream industry chain enterprises together to form their own clear division of industrial clusters. Rely on the complementary advantages of industrial clusters, to improve the comprehensive competitiveness of all enterprises in industrial clusters in order to consolidate their market share.
  We believe that a steel enterprise groups, these two restructuring mode can cross, but also can be used at the same time, according to the characteristics and circumstances of the development of enterprises. We believe that the consolidation and reorganization of these two model is to solve two of China's steel industry, industrial concentration is low, way out.
  "21st Century": You just mentioned that the capacity and energy consumption of the two outstanding problems in the development of steel industry, the "12th Five-Year" period, the steel industry capacity and energy consumption have no specific goals?
  Luo: China's steel industry faced with energy, the reality of severely constrained resources and the environment, the "12th Five-Year" period, the whole industry must be performed to control the total steel production, increase the intensity of the energy conservation work, continue to eliminate backward and low level of capacity three work hand in hand, to create synergy.
  Overcapacity problem is fundamentally a structural problem, on the one hand, the advanced production capacity is still insufficient; backward, low-level proportion of production capacity is too high, we expect about 40% of the account for the total capacity.
  Present in the steel production process, the effective utilization of energy, only about 30 percent, while nearly 70% of energy consumption is through solid, liquid, gaseous obtain emissions, the actual situation shows that we should vigorously develop the use of secondary energy recycling technologies, the goal of zero emissions, improve the effective utilization of energy resources.
  Steel enterprises should attach importance to the industrial added value of the enterprise and industry, by the emphasis on crude steel production to improve the industrial added value of industry-wide in the proportion which the total of our national economy and the industrial added value as a future measure of whether a business and raise quality and an important indicator of effectiveness.
Source: 21st Century Business Herald

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