Shandong sounded the horn of closing the production capacity of steel and coal.

　　According to the recently announced “Implementation Opinions of the Shandong Provincial Party Committee and the Shandong Provincial People ’s Government on Deepening the Promotion of Supply-side Structural Reforms”, Shandong will reduce the production capacity of steel and coal by 10 million tons and more than 45 million tons in three years.

　　According to a reporter from the 21st Century Business Herald, during the "Thirteenth Five-Year Plan" period, Shandong has made greater reductions in the output of these industries. Among them, the coal production capacity was reduced by 64.6 million tons and crude steel by 15 million tons in 5 years, accounting for about 40% and 20% of the province ’s raw coal and crude steel output in 2015, respectively. Compared with the total reduction of coal and steel production by 500 million tons and 100 million to 150 million tons during the "13th Five-Year Plan" period, the province alone accounts for more than 10% of the country's total output reduction.

　　However, such a large scale of reduction is facing the problem of how to implement it. Wang Guoqing, director of the Lange Steel Industry Research Center, believes that the current billet price is about 2,000 yuan per ton, and the profit is 300 yuan per ton. At this time, it is very difficult for profitable enterprises to close and reduce production.

　　"So if the reduction of steel production depends on the market," she said.

　　Since 2005, various national departments have raised the issue of overcapacity in steel and other fields. However, the national crude steel output has risen from 350 million tons in 2005 to more than 820 million tons in 2014. It was only in 2015 that due to the price drop, many private enterprises stopped production, making the conceptual steel output only 800 million tons, which has become the most declining in decades.

　　In April of this year, crude steel prices rose by almost 30% compared with March, which caused most of the steel mills that had previously stopped production to resume production.

　　Steel and coal cut production by 20% and 40% respectively

　　According to the supply-side reform plan announced by Shandong, from 2016 to 2018, the capacity utilization rate of the “5 + 4” overcapacity industries (steel, cement, electrolytic aluminum, flat glass, shipping, oil refining, tires, coal, chemical industry) will strive to rise to 80 More than 10% of the time, the goal of reducing excess capacity issued by the state was completed on time. Among them, the production capacity of steel and coal was reduced by more than 10 million tons and more than 45 million tons.

　　The above plan pointed out that special financial awards will be implemented. While actively fighting for special awards and replenishment funds for the restructuring of national industrial enterprises, the Provincial Finance will provide awards and reimbursements for the diversion of personnel in the resolution of excess capacity.

　　In addition, actively revitalize land resources. The allocated land for iron and steel, coal and other industries to resolve the withdrawal of excess capacity can be transferred according to law, or the local government can recover the land for re-sale. The land transfer income can be used to pay for the resettlement of employees who withdraw from the enterprise through budget arrangements according to regulations.

　　Throughout the "13th Five-Year Plan" period, Shandong has greater capacity to remove steel and coal.

　　Wang Wanliang, deputy director of the Shandong Provincial Economic and Information Commission, pointed out that through multiple measures and comprehensive measures, starting from 2016, it will use five years to reduce the overall production capacity of 9.7 million tons of pig iron and 15 million tons of crude steel, and set up 54,207 employees. Enterprises such as Rizhao Iron and Steel Fine Base and Qingsteel New Factory have been built to optimize the industrial layout and structure, and the coastal steel production capacity has reached about 40%.

　　During the "13th Five-Year Plan" period, 114 coal mines were withdrawn, reducing the production capacity of 64.6 million tons, accounting for 59.38% and 35.72% of the existing coal mines and production capacity, respectively. 3 years of concentrated research and 5 years to ensure completion.

　　In this regard, Xu Zhongbo, a professor at the School of Metallurgy, University of Science and Technology Beijing, pointed out that Shandong ’s capacity reduction target is higher than that of the country. The country ’s steel production capacity is only about 10%, and Shandong Iron and Steel (600022, shares it) is going to 20% capacity, reflecting Shandong ’s The determination is bigger.

　　However, he also pointed out that it is necessary to build enterprises such as Rizhao Iron & Steel Base and Qinggang New Factory, which means that the new address of the Qingdao Steel Plant will still be put into operation according to the original output of 3 million tons, and the Rizhao Iron & Steel Base will also be in 2016 It will be completed and put into production at the end of the year. This part should not be eliminated. "These are still under construction because they have not yet been put into production and there is no problem of reducing production." He said.

　　Wang Wanliang, deputy director of the Shandong Provincial Economic and Information Commission, previously pointed out that the way to reduce production capacity is: the steel industry strictly prohibits new production capacity and resolutely stops any form of steel production projects under any name to record new production capacity. The coal industry strictly implements measures to restrict mining, reduce mining, and slow mining, and strictly prohibits increasing production scale through technological transformation and production capacity verification.

　　To this end, we must strictly implement laws, regulations and industrial policies. By monitoring and inspecting whether the environmental protection, energy consumption, quality, safety, technology and other aspects of the company meet the national and Shandong provincial standards, a six-month rectification period will be given to the enterprises that fail to meet the above five standards. As required by the standard, it will be forced to shut down and withdraw in accordance with laws and regulations.

　　Each city prepares an annual plan

　　The 21st Century Business Herald reporter learned that Shandong currently requires cities to set up leading groups to reduce production capacity and strengthen the organization and guidance of the work on reducing production capacity. At the same time, compile the implementation plan and annual plan of the city's capacity reduction, and implement the capacity reduction work to units and enterprises. However, it is still difficult to allocate to various enterprises after the ***.

　　In this regard, coal prices are low, and it is easy to implement production cuts, as evidenced by the partial removal of some zombie enterprises under the Shandong Energy Group in the past. But the operation of the steel industry is difficult.

　　According to the understanding, Shandong ’s supply-side reform plan has the content to encourage the development of coal-electricity integration and coal washing, processing and transformation, and to build a number of industrial bases and parks with prominent coal characteristics.

　　It is difficult for the steel industry to cut production capacity because the current steel prices are guaranteed to not lose money. Shandong's private steel companies are the same as those in Hebei, and they have recently been profitable.

　　Building materials Dazong.com analyst Zhang Lin told reporters that Shandong's steel is similar to Hebei's. The production efficiency of private enterprises is high, and the production efficiency of state-owned enterprises is low. The production efficiency of some state-owned enterprises in Hebei is calculated according to the annual steel production per person. About 1/3.

　　"The production efficiency of Shandong Rizhao Iron and Steel and Shiheng Special Steel is very high, but it is unlikely to reduce the company's production capacity. As for state-owned enterprises, because of government support, it may reduce some redundant staff after the ***. For example, use the state to fund laid-off workers. , But it is also very difficult to reduce production capacity. "She said.

　　Since Shandong Iron and Steel and Coal will have 54,207 employees within 5 years, this will involve more companies. The above-mentioned Shandong supply-side reform plan also pointed out that while actively seeking special awards and replenishment funds for the restructuring of national industrial enterprises, the provincial financial co-ordination will provide awards and reimbursements for the diversion of personnel in resolving excess capacity.

　　In addition, it is necessary to properly place surplus personnel. After voluntarily choosing, the enterprise agrees and signs the agreement, the employee within 5 years from the legal retirement age changes the labor contract according to law, and the enterprise pays the living expenses and pays the basic old-age insurance and basic medical insurance.

　　Hebei is currently working on the elimination of steel production capacity. However, as steel prices rise, some closed projects may resurrect.

　　For example, the Central Environmental Protection Inspectorate Group found that some iron and steel enterprises in Hebei have resumed production due to rising prices.

　　Wang Guoqing, director of the Lange Iron and Steel Industry Research Center, pointed out that at present, only the figures for production cuts have been released, but there are no more details about how to allocate them to various enterprises and places. It remains to be seen to what extent this round of reduction in steel production capacity is implemented.