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Global Steel Overcapacity Prevailing Non-endemic To China
Oct 31, 2016

Press Conference of the State Council on April 28, 2016 (Thursday) at 10 o'clock in the morning in the Press Office of the State Council, Ministry of industry and information technology spokesman, monitoring Coordination Council Secretary Zheng Lixin introduced 2016 industrial developments of the communications industry in the first quarter, and answering reporters ' questions. Zheng Lixin said that overall, the steel industry is now very difficult, declining production, reduced benefits, especially some of the iron and steel enterprises operating with great difficulties. First, we should see the steel overcapacity is not country-specific, there is excess iron and steel all over the world. Not only are we to deal with the problem of excess steel capacity, all countries of the world should be to address and solve the problem of overcapacity. Surplus is due to the weak recovery in the world economy after the world financial crisis, uncertain volatile factors in the increased demand took on a shrinking trend. According to the world steel Association statistics, the global output of crude steel in 2015 was 1.62 billion, average capacity utilization of 69.7% in 2014, down 3.7%. Average capacity utilization in our country and the world are basically consistent. Steel overcapacity problem is not unique to our country, but the world economy facing common problems and common challenges to solve this problem, is the shared responsibility of States, need to work together to promote the healthy development of the global steel industry. Second, China's steel production to meet domestic demand. China is the world's largest steel producer, is also the largest consumer of steel. In recent years, China Steel is used mainly for domestic consumption. By 2005, China has been a net importer of steel products, is now the world's fifth-largest importer. Since 2005, China's steel products, specifically in order to meet domestic demand, and trade under World Trade Organization rules. Therefore, not only does not encourage steel exports, and iron and steel producing country in the world, only restrictive measures on steel exports active country. Third, the "Twelve-Five" during China's iron and steel industry to phase out backward production capacity and remove excess capacity and achieved remarkable results. Deployed by the State Council, Ministry of industry and information technology, in conjunction with the national development and Reform Commission, the Ministry of finance and Ministry Department, environmental protection Department and other departments to strengthen coordination, establishment of working mechanisms, improve the policy measures, the "Twelve-Five" period, total about 90 million tons of obsolete steel capacity. After five years of effort, iron-making blast furnaces, now 400 cubic meters and below 30 tons and below converter and electric furnace has been basically eliminated. Finally, the "Thirteen-Five" period, our Government will continue to attach great importance to and actively resolve the excess steel capacity. Resolve on the issue of overcapacity in steel industry, our Government's stance is firm, the goal is clear, and has been included in this year's national economic and social development in the 13th five-year plan. On February 1 this year, the State Council issued a circular on the iron and steel industry resolve the excess capacity out opinions on development, full deployment of this work requires eliminating backward production capacity in recent years on the basis of, starting from 2016, 5 years to reduce crude steel production capacity of 100 million-150 million ton target. Accomplish this goal for the healthy development of the iron and steel industry in the future will be laying the Foundation for very important, but to achieve this goal, to do a lot of painstaking work, needs across departments and levels of Government and business to work together, to implementation of the Central and the State Council on resolving a series of important overcapacity deployment.