Last November, the company dismantled a blast furnace with less than 300 cubic meters, and now the new blast furnace is rising. "It is already under construction and we are speeding up construction." A person from the company told the reporter bluntly.
The company is currently building two more than 600 cubic meters of blast furnace, ready to put into operation as soon as possible. The company's demolition of Xiaojian University is the country's stepping up the elimination of backward production capacity of the steel industry, but it has caused an increase in actual steel production capacity.
The national competent authorities recognized the seriousness of the above issues and tried to change the vicious circle of more outdated production capacity.
On March 23, the Ministry of Industry and Information Technology held an aggression meeting to brief the recent key work of the iron and steel industry and proposed that the next step is to increase the elimination of backward production capacity. In 2010-2011, a total of about 100 million tons of outdated ironmaking capacity needs to be eliminated.
In 2007, the largest number of outdated iron-making capacity plans in the past five years was only 30 million tons. "Eleventh Five-Year Plan" also eliminated 100 million tons of backward iron-making capacity in the entire five years. The elimination of so many iron-smelting capabilities in two years has led the industry to question: How many targets have been eliminated?
Jia Yinsong, an inspector of the Department of Raw Materials of the Ministry of Industry and Information Technology, told reporters that the reason for this is that “the technical standards for steel are higher than the “Eleventh Five-Year Plan†and the scope of elimination is also expandingâ€.
The Ministry of Industry and Information Technology has determined that by the end of 2010, 300 cubic meters or less of blast furnaces will be phased out and 20 tonnes or less of converters and electric furnaces will be phased out; before the end of 2011, 400 cubic meters or less of ironmaking blast furnaces will be phased out and 30 tons or less of steelmaking converters and electric furnaces will be eliminated. Local investment further accelerated
The reporter was informed that over the years, on the one hand, the state has accelerated the adjustment and control of backward production capacity. On the other side, the local government has dismantled and built the university and accelerated the pace of investment and production, resulting in an increase in the total steel production capacity.
The practice of the steel company in the Fengfeng mining area is still minor. The reporter was informed that some large steel giants have actually built larger steel stoves after the demolition of small furnaces. For example, a Tangshan Iron and Steel Company dismantled three 380 cubic meters of blast furnaces last year and built a new 3,200 cubic meter blast furnace.
Xu Zhongbo, a professor at the School of Metallurgy, University of Science and Technology Beijing, found out that at present, small furnaces have been removed from all parts of the country, and new large furnaces rarely have less than 1,000 cubic meters. The main reason is that the bigger the energy-saving and emission-reducing, the more it will not fall behind in the process, and it will also help the production to speed up. "Some small businesses have good returns, make money faster, and are more willing to expand their reproduction," he said.
According to his understanding, in the enterprises with an annual output of less than 5 million tons of steel production capacity last year, the profit growth rate was about 70% because the products were mainly made of building materials. The iron and steel enterprises with an annual output of more than 5 million tons, especially the extra-large steel companies, because the products are mainly high-end, the benefits are not good, and the profits have dropped by 50%. However, large enterprises do not dare not to produce, and small enterprises accelerate production due to good efficiency, which makes steel production continue to accelerate this year.
According to figures from the National Bureau of Statistics, the average daily output of crude steel was 1.537 million tons in December last year, and the average daily output rose to 1.744 million tons in January-February; the crude steel output in January-February was 102.89 million tons, an increase of 25.4%. During the same period, the investment in iron and steel (ferrous metal mining, smelting, and calendering) was 26.2 billion yuan, a year-on-year increase of 21.4%.
For this reason, Xin Guobin, Director of the Office of Operational Supervision and Coordination, Ministry of Industry and Information Technology, judged that the capacity of the steel industry is still expanding blindly. He pointed out in the analysis of the first quarter industrial economic operation situation in some western provinces on March 23th that there are still some prominent contradictions and problems in the current industrial economic operation. For example, although the industrial scale has been growing, but some industries have repeated construction and overcapacity. Seriously, the pressure to eliminate backward production capacity is greater.
Jia Yinsong, an inspector of the Department of Raw Materials of the Ministry of Industry and Information Technology, told reporters that the backward iron and steel production capacity that needs to be eliminated next year is 100 million tons, and these standards will not change in the short term. "The first implementation of the new standard in these two years, how the 'twelfth five-year' standard, but also a specific study." He said.
Since 2011 is the first year of the “Twelfth Five-Year Planâ€, does this mean that the entire “Twelfth Five-Year Plan†will implement this standard in 2011? Currently, there is no definitive conclusion, but it is certain that the standard will continue to be raised in the future.
Qi Xiangdong, deputy secretary-general of the China Iron and Steel Association, told reporters that local iron and steel enterprises have a very high level of vision and have been prepared for a long time. “For example, the current standard is to eliminate 400 cubic meters of iron-smelting blast furnaces in the next year, and the current blast furnace can be built at 500 cubic meters. Above meters, this can be avoided in the short term."
A person from the Ministry of Industry and Information Technology told the reporter that in the future, as the level of economic development increases and the steel production capacity increases, the country will obsolete and outdated production capacity will always be obsolete in accordance with the old process standards. "So the standard of backward production capacity is raised every few years for sure. This is a dynamic process."
Xu Zhongbo, a professor at the School of Metallurgy of Beijing University of Science and Technology, suggested that the decision-making level should not worry too much about the specific eliminated figures. "The National Development and Reform Commission and the Ministry of Industry and Information Technology can greatly increase the steel's technological standards, which are conducive to energy-saving and emission reduction. As to whether companies are willing to accelerate production, they will carefully consider them for profit."
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