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Resolving the excess capacity of steel industry long and p

According to the Xinhua News Agency, Shanghai, June 5 special power (Reporter Li Rong) "China's steel industry to resolve excess capacity, is not simply get through a winter, this is a long and painful process." Chinese Society of Metal Professor Xu Kuangdi recently The 5th Baosteel Academic Annual Meeting made such a judgment.
 Iron and steel industry has become a typical example of China's surplus industries. Some institutions estimate that if China's macroeconomic growth steadily landed, the excess annual production capacity of the steel industry will reach 200 million to 300 million tons. Governance of excess steel has gone through several rounds of backward, but the effect is not obvious, and some areas even more and more of the phenomenon. Many experts believe that governance must be converted to ideas, to find a more effective path.
Governance for at least 5 to 10 years
 Baosteel Academic Annual Meeting, Baosteel to Xu Kuangdi ask: "EU governance steel production over 20 years, we have to use a few years in China?
 "It is estimated that at least five to ten years," says Xu Kuangdi, "because of policy adjustments and corporate reorganization, and it will take time, and governance is a long process." In the eyes of some experts, the steel industry is experiencing overcapacity and targeted Governance, is the world's many developed countries in the development process have encountered the difficult problems.
 According to the relevant research in the EU, usually the rapid economic growth, the steel industry production capacity will be a serious surplus. The EU has adjusted for the excess steel problem, which has been around for nearly 20 years.
The development of the extensive and disorder caused by excess
 Excessive steel, with historical samples, with international samples. But the industry and academia is still looking for China's steel industry surplus more individual, more internal reasons.
 One thing is that most of the experts in the industry agree that the development of China's steel industry in the past 30 years has been increasing with the growth of China's total economy, which has played a supporting role in the "grain" of raw materials. But its development of the extensive and disorder, is also obvious.
 According to Xu Kuangdi and other experts, there are two reasons for China's excess steel, one is external reasons, by the domestic economy over the impact of investment-driven, even in 2008 to 2010, the global financial crisis, high impact period, China Iron and Steel The new capacity of nearly 300 million tons; by the local government GDP and tax revenue target system and the local maintenance of social stability, steel production capacity is only increasing.
 The other is the internal reason, iron and steel enterprises only to maintain production, to maintain the mobility of enterprises in order to have a series of payment functions, including repayment and manpower, the cost of expenditure. Bank loans, but also depends on the cash income of enterprises in order to "borrow the new and old", trying to maintain. This may answer a general doubts in the industry: why steel losses, but it is the more losses the more yield, not cut, not to production capacity?
Only eliminate the backward overcapacity overcapacity
Excessive is an old problem, governance over is also a round of another round. However, the problem still exists, local or even more serious.
 According to the views of some experts in the industry, in the past to eliminate backward ideas, in the backward production capacity on the credit, but in further curb overcapacity on the difficult role. Some areas even in the process of eliminating the backward demolition of small build, openly to expand production capacity.
 Xu Kuangdi and other experts believe that the current steel industry by the market oversupply and high prices of raw materials, double the pressure, the majority of steel prices in the loss or cost of running state. China's governance of steel surplus, should learn from international experience, for their own internal reasons for excess, identify the effective path, a step by step to implement the patient.