The detailed rules for the national development an

2022-10-16
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National Development and Reform Commission: the detailed rules for the elimination of backward production capacity of steel are being formulated

although the goal of eliminating backward production capacity of steel enterprises has been set, the most concerned compensation rules have not been issued. Led by the Ministry of industry and information technology, and in conjunction with the national development and Reform Commission, the Ministry of finance, the Ministry of land and resources and other ministries and commissions, the Ministry is coordinating the formulation of detailed rules for eliminating the load imposed on the test piece directly and sensitively by the backward production capacity and installing tension (compression) force sensors in appropriate positions. The relevant plan will be introduced within three years

On May 3, the national development and Reform Commission issued a document "accelerating the elimination of backward production capacity and promoting the adjustment and upgrading of industrial structure in maintaining growth and expanding domestic demand", proposing that the iron and steel industry should complete the elimination of blast furnace production capacity of 300 cubic meters and below and converter and electric furnace production capacity of 20 tons and below by the end of 2010

according to the issued plan for the adjustment and revitalization of the iron and steel industry, blast furnaces of 400 cubic meters or less, converters of 30 tons or less and electric furnaces will be eliminated by the end of 2011. This is equivalent to eliminating 72million tons of backward iron making capacity and 25million tons of steel-making capacity at that time

on May 4, the national development and Reform Commission issued a document again to clarify the elimination target for 2009, that is, this year, it plans to eliminate 10million tons of backward iron making capacity and 6million tons of steel-making. The national development and Reform Commission made it clear that the central government will adopt the method of transfer payment to reward economically underdeveloped regions for eliminating backward production capacity

it is worth noting that the NDRC did not mention the specific compensation measures that the industry is most concerned about in its two documents

In this regard, an official of the national development and Reform Commission revealed that the detailed rules for eliminating backward mechanisms are being formulated and will be completed within three years. In addition, the official revealed that the financing policy of maintaining pressure on the steel industry will be introduced in June this year, which will play an important role in eliminating backward production capacity

stimulated by the 4trillion policy investment, one voice believes that China's energy conservation and emission reduction tasks may not be completed, but the national development and Reform Commission responded by announcing specific targets for eliminating backward production capacity

backward production capacity has been restricting the healthy and orderly development of China's iron and steel industry. Although the relevant national departments have been emphasizing the elimination of backward steelmaking and ironmaking production capacity in recent years, the progress has not been smooth because there is no specific exit compensation mechanism

"at present, the state pays unprecedented attention to the elimination of backward production capacity." Said Li Zhao, an analyst at Lange steel

on April 23, the Ministry of industry and information technology released the implementation of the plan for the adjustment and revitalization of the steel industry, saying that it was currently conducting a thorough investigation of backward steel production capacity. Li Zhao said that although the state had previously conducted an investigation on backward production capacity, it was not strong enough. Previously, it was generally reported by local governments, and there were few investigations in person. Previously, many local governments concealed backward production capacity for the purpose of Taxation, which aggravated the difficulty of elimination. "The Ministry of industry and information technology will help to find out the hidden backward production capacity." Li Zhao said

on the other hand, Li Zhao believes that the resistance to eliminate backward production capacity and make a return visit is also the smallest. In his view, it was difficult to eliminate the backward production capacity in the steel industry before, mainly due to the high efficiency of steel enterprises, which resisted the elimination of backward production capacity. Now, due to the impact of the financial crisis, some enterprises with backward production capacity have difficulties in survival and are willing to eliminate them before receiving corresponding compensation

"if there is no feasible fine (2) there is no corrosive medium around, the proposed goal of eliminating backward production capacity will still be as difficult as before." An insider from the iron and steel division of Fosun Group said, "whether it can be effectively eliminated depends on the compensation mechanism."

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