Steel production capacity is still expanding under the context of excess

    Yesterday, “My steel net” annual meeting closed in Shanghai. The secretary general of China Steel Industry Association, Zhang Changfu introduced ar the annual conference that despite China’s excess steel production capacity, investment growth was apparent reproduction. Non-state-owned enterprises are the main investment, and investment hotspot is Bohai Sea area which has serious excess capacity. 
    It is still expanding under the context of excess capacity
    According to the published 1-10 months this year, the symbol of steel industry–black metal smelting and rolling processing industry, investment has been increase 18.9%, while last year’s growth rate only has 1.6%, an acceleration of growth rate of 17.3 percent. This indicates that, in the context of overcapacity of steel pipe industry, there are still the phenomenon of capacity expansion growth.
    It is worth concerning that the Bohai Sea region is still investment hotspotsis which has a serious excess capacity. 1-10 months, Bohai Sea region included: Hebei, Liaoning, Shandong, Tianjin, Beijing, completed a total investment of 85.3 billion yuan steel project, the proportion of total industry investment of 27.2%, investment growth has the largest proportion.
    However, the Bohai Rim region has gathered over 300 million tons of production capacity, excess capacity has been serious, 50% of the products need to spread in all directions in the East and West.
    Non-state-owned steel enterprises borrow money to be the invest main power
    It is also worth concern about the source of investment funds. In the first 10 months, investment in iron and steel, the investment of non-state-owned steel enterprises is 2.1 times to the investment of state-owned steel enterprises, is even higher 1.5 times more than last year, and 2 / 3 invest funds of non-state-owned steel enterprises are from the bank. Zhang Changfu introduced, in which state-owned investment is 115.26 billion yuan, decrease 0.38% by last month. Its own state-owned investment funds has the amount of 59.42 billion yuan, accounting for a total investment of state-owned enterprises 51.6%.
    And state-owned investment has 235.85 billion yuan, up sharply by 39.4%. In non-state-owned investment funds, 78.75 billion yuan is the funds by his own, accounting for 33.4% of the proportion of investment, more than 15 billion non-state-owned investment are borrowed by bank’s money. Zhang Changfu said, “Let 2 / 3 of non-state-owned is holding the money from the bank; investment area also has investment to the area of serious excess capacity, which should cause us to reflect on and have our attention and analysis.”
    Bohai Sea is no longer to build a new iron and steel base
    For the industrial layout problem, the Ministry of Steel and Raw Materials Division Director Zhang Dechen introduced, during the 12th five years paln, China will optimize the industrial layout: Bohai Rim, Yangtze River Delta region in principle no longer have the construction of new steel tube base. Among them, the Bohai Sea region 50% production capacity rely on Sinotrans, and these local resources shortage, environmental stress, iron ore imports are far distance, and had increased transport stress level.    
    In order to curb overcapacity blind investment in the region, southeast coast of China will push forward the construction of the steel base, Zhang Dechen said, a lot of excess capacity to expand production capacity of the region are directed to the south. Southeast coastal bases if can have a good job in the 12th five years plan, the entire layout of steel can be basically completed.

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