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Xu Kuangdi forecast digestion overcapacity time: China's ste

Yesterday, the "Better Steel, Better Life" as the theme of the seventeenth session of the Shanghai International Metallurgical Industry Exhibition and the "new challenges, new steel" as the theme of the fifth session of the Baosteel Academic Conference at the same time in Shanghai International Exhibition Center opened. In the iron and steel industry is facing the development dilemma of the background, the steel industry overcapacity, how to transform and sustainable development has become the focus of attention of the meeting.
Steel enterprises need mergers and acquisitions restructuring and development
      Chinese Academy of Engineering Yin Ruiyu yesterday at the media meeting that since 2000, coking coal prices and iron ore prices were turned three times and 6 times, but steel prices only turned 1.5 times. "China's steel industry has entered the era of low-profit, overcapacity is the fundamental problem, how to solve this problem has become a strategic issue in the development of the steel industry."
 China's steel industry, said Xu Kuangdi, China's steel industry from 2004 to 2012 due to large-scale capital construction and surge of nearly 400 million tons / year of production capacity, the current steady growth due to economic growth, steel production capacity of 200 million -3 billion Ton.
 Xu Kuangdi that China's iron and steel industry is in the market for over-demand and high prices of raw materials under the dual pressure, the majority of enterprises at a loss and cost of running state. And only through the elimination of backward production capacity to curb the growth of production has little effect, steel enterprises face mergers and acquisitions and restructuring.
 Asked "how long this process is long", Xu Kuangdi conservative prediction, said, "at least 5 to 10 years." Xu Kuangdi pointed out that the European steel industry should cope with overcapacity from 1980 to 2000 adjusted for 20 years, Only the excess capacity from 38% to adjust to about 18%.
 "According to international experience, through the reduction of enterprises is a reasonable way to digest excess capacity, but for steel enterprises, it will be a long and painful process." Xu Kuangdi said.
Baosteel will explore the transition to service providers
Baosteel Group Chairman Xu Lejiang that "environmental protection and energy saving is a good way to solve the excess capacity of the steel industry is the long-term task of the steel industry, the steel industry over the past few years the development of disorder caused a lot of problems, many companies do not make money, Fail to meet environmental standards, then only to withdraw from the market.
 For Baosteel's own development, Xu Lejiang said that on the one hand to achieve green steel, on the other hand the traditional manufacturing factor cost advantage has disappeared, can only seek value-added services to the space. "Baosteel will continue to explore the transition to the service provider, has now formed a resource development, steel extension processing, technical services, finance, production services, coal chemical industry (market area) and other six plates of the steel industry chain structure, Type 'to' market type 'change.