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This year to resolve excess steel production capacity target has been completed 77%

Introduction
◆ The fourth quarter, the steel industry situation is not optimistic, there may be the most severe quarter of this year.
◆ January - August, the industry-wide profits of 21.5 billion yuan, more than 300 billion yuan over the same period last year.
◆ As of the end of August, this year to resolve the excess capacity target task has been completed 77%.
The third quarter of the iron and steel industry, economic operation of the forum was held, the Iron and Steel Association called - control production, stable prices is still the key to security benefits
September 29, the third quarter of the economic operation of the steel industry forum held in Beijing. Mr. Liu Jianjiang, Secretary General of the China Iron and Steel Association, Mr. Gu Jianguo, Executive Vice President of the Company, Mr. Qu Xiuli, Vice President of the Association, and other representatives from 22 iron and steel enterprises attended the meeting.
At the meeting, Liu Zhenjiang pointed out that this year, the iron and steel industry to run in the production and increase efficiency, financing, adjust the structure to increase efficiency and many other highlights and innovation, companies need to learn from each other. In the fourth quarter, control of production and price stability is still the key to determining business efficiency.
Gu Jianguo said that as of the end of August, to resolve excess iron and steel production capacity has been completed this year, 77% of the target volume of the task is expected to complete the annual objectives and tasks, or even overfulfilled.
Steel Association called on the fourth quarter, iron and steel enterprises or to unswervingly practice the "go production, control production, reduce costs, prevent risks, increase efficiency" approach to strengthen industry self-discipline, consciously control the production, seriously implement and respond positively To resolve the excess capacity work.
Iron and steel industry in the first 8 months of 21.5 billion profit
Excellent enterprise "bright real chapter"
According to reports, January-August this year, the steel industry is better than expected, crude steel production was 536 million tons, down 0.1%; industry-wide profits of 21.5 billion yuan, more than 300 billion yuan more than last year. Steel prices rebound is the main reason for corporate profits. Since the beginning of this year, with the steady growth of the country and resolve the effect of excess production capacity policy, steel supply and demand has eased, prices rebounded. At the end of August, CSPI China's steel price index was 77.54 points, up 37.56% over the end of December.
"This year should be particularly praised is reduced by the production and increased efficiency of the enterprise." Liu Zhenjiang said. He said that this year, the steel industry has many bright spots and innovation:
First, some enterprises have achieved the goal of reducing production and increasing efficiency, including Baosteel, Hegang, Shougang, WISCO, Shagang, Bengang, Taigang, Maanshan, Jiuquan, Shanang, Lingang and Chongqing. January-August, the above-mentioned enterprises of crude steel production year-on-year decline in varying degrees, the majority of enterprises to achieve profitability, individual enterprises significantly reduced losses. In particular, Baosteel, excluding Zhanjiang iron and steel base factors, production fell in the excess capacity to resolve has played a leading role.
Second, in the face of most of the difficulties faced by iron and steel enterprises financing difficulties, the Iron and Steel Group and Shagang in raising funds to make an example. The overall financing environment of Shagang is favorable to most of the bank's head office, and it has been actively pursued by the bank's head office to raise funds for financing. The Bank has also made a series of efforts to raise funds for financing, Maturity banks can timely renewal of approval.
Third, throughout the industry "shuffle" period, including Shougang, part of the iron and steel enterprises, through internal restructuring in exchange for the benefits. This year, Shougang to strengthen the "production and research with" integrated promotion system, improve the product structure adjustment of the contribution to the economic efficiency of enterprises, high-end leading products to achieve year-on-year increase.
To resolve the excess capacity of the task has been completed 77%
To form the industry together
"From the current situation, this year to resolve the goal of excess steel production capacity can be estimated to be completed, or even overfulfilled." Gu Jianguo said, "As of the end of August this year, the objectives and tasks have been completed 77% .And, the provinces for the excess capacity The attitude of clear, some provinces also increased the intensity.
"Resolve excess capacity this year has been a big way to 'open', 'tough battle' is still behind." Liu Zhenjiang said. He stressed that in resolving excess capacity, the iron and steel enterprises can not do onlookers, not only to take the initiative to do, but also help the government to do, take the initiative to provide information. To form the industry together to jointly promote the work carried out to resolve, the real backward production capacity completely eliminated.
For the excess capacity to resolve some of the problems in the process, Gu Jianguo said that now, to resolve the excess steel production capacity has been the CPC Central Committee, State Council and relevant ministries unprecedented attention, this is a rare opportunity for the steel industry. Because there is no successful experience can learn from, coupled with China's steel industry distribution area is large, the situation is complex, to resolve the excess capacity in the process may exist some problems. In this regard, we must raise awareness, correct treatment, resolutely support, support, and actively respond to the work carried out.
Adhere to the "control of production, stable prices" policy
Strengthen industry self-discipline
Liu Zhenjiang pointed out that production and prices are still the iron and steel enterprises to determine the key to the effectiveness of the fourth quarter. The fourth quarter, the steel industry situation is not optimistic, there may be the most severe quarter of this year. To strengthen the industry self-discipline, so that control of production into the enterprise's consciousness. Both the state-owned enterprises or private enterprises, should have a conscious awareness of production control.
The fourth quarter is the traditional demand for steel off-season, coupled with the current decline in exports of steel chain, coal, coke, logistics costs and other costs, iron and steel enterprises to increase production and management pressure. Some companies reflect, at present, in some areas of coke prices have risen from 760 yuan / ton to 1,580 yuan / ton; Automotive Regulations after the implementation of some "is located inland, two out" business freight rose about 30%.
Qu Xiuli said that the recent rapid rise in prices of coal and coke is due to the short-term effects of various factors such as the reduction of coal production, the tightening of environmental protection to coke production, the limited railway and road transportation, and the later market will be stable. In this regard, enterprises should actively do a good job in convergence and coordination.
Analysis of the fourth quarter of the industry situation, Steel Association call, iron and steel enterprises or to unswervingly implement the Steel Association Council "to capacity, control production, reduce costs, prevent risks and increase efficiency" approach to strengthen industry self-regulation , Grasp the rhythm of production, and consciously control the production, seriously implement and respond positively to resolve the excess capacity work for the full year profit target.

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