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Li Yizhong: iron and steel industry losses through...

Time:[2008-12-13]    Read[212]
    State Council Information Office in 2008, 12 Ri Yue 12 (Fri), 10:00, held a news conference, Industry and Information Minister Li described the promotion of stable and healthy industrial development, and answered a reporter's question.
     We know that       reporters on the steel industry's upstream and downstream impact of very large, in order to stop the decline in the steel market momentum, the letter will take concrete measures? We have policies and measures to see inside, the letter will increase the importance of resources and products Shouchu efforts. Recently, there have been rumors that the letter the Department of Public Works and a number of joint development of iron and steel sector is Shouchu the program, please tell us Minister Lee in this regard.
     Li Yizhong         iron and steel industry is the most affected one of the industry. I have just introduced, the price of steel products in the last few months dropped by nearly half, while iron ore prices are diving, but unfortunately, because of our foreign dependence on iron ore is 50% of our steel business last year, this year The beginning of iron ore prices skyrocketing, the purchase of a large number of high-priced ore. According to reflect the Iron and Steel Institute, steel plant inventory of iron ore price is 30,000,000 tons, the terminal on the heap 90,000,000 tons, is to add up to 120,000,000 tons, I also heard that in the long-term supplier in the hands of the order list has 100,000,000 No shipping tons of these add up to a total of 220,000,000 tons.
     What is this concept? The existing volume of steel products enough to use the next six months, but prices go down by 30% -40%, iron and steel enterprises are facing the dual problems of high prices of raw materials to be digested until March next year, while the low-cost products to be fulfilled immediately, Therefore, iron and steel industry at a loss. Not only a loss of small businesses, large enterprises there have been losses, a more serious situation.
     To deal with the crisis, through the difficulties, mainly by industry and business efforts, the Government should also support it. We and the relevant departments to discuss about the following considerations: First of all, in steel exports, we propose to adjust the import and export tax rates for some products, high-energy, low-end steel products is to restrict exports, but a number of high-end products, or to encourage Exports, the export tax rebate rate increase a few percentage points. Secondly, we have to support the technological transformation of iron and steel enterprises. China's steel production capacity of 6 million tons this year, the actual output may be 4.8-4.9 million tons of excess capacity, can no longer be the launching of new, the key is to rely on technological transformation. I just talk about the quality of varieties, saving energy and reducing consumption is the focus of next year if we discount 15,000,000,000 funds to support the technological transformation of the steel industry will be the focus. Now we have listed the steel industry needs the support of some products, such as the three levels of high-strength steel, high-grade automotive sheet, high consumption of the row-oriented silicon steel, steel products such as high-speed track, we should all support.
     The third measure is to eliminate backward production capabilities, a large iron and steel enterprises to encourage mergers of small steel mills. Chinese iron and steel smelting enterprises now have close to 1000, the concentration is too low, by taking advantage of the financial crisis, to seize this opportunity to small iron and steel enterprises in the customs clearance of the merger and the merger, we have to promote change by the iron and steel industry Strong in the merger should give the relevant policy.
     Article IV, as you can Shouchu some of the iron and steel products, are doing in this respect and consideration. Because we are missing a lot of high-end products, such as I have said that those products are now due to a drop in demand, steel production was down, or the amount, time and the ability to short, wasted. If certain national policies, such as enterprise-to-deposit, through the discount, or acquisition of part of the government, not the ability to make short, so that production continues, we can cope with current difficulties. As far as I know, the National Development and Reform Commission and other departments are being developed in this area Shouchu number and the specific ways. We would have some lack of black metal, such as manganese, chromium, and other resources, can now take advantage of low international prices that increased imports. This, of course, there are some risks, China increased imports, the price may be higher, and we do this when on.
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