Control over the years, production continues to increase. In the first half of this year, the national average, nissan 2.15 million tons of crude steel is equivalent to the level of annual output of 786 million tons of crude steel. Crude steel growth of 4.6% in June, in the first half of the year was 7.4%, the production of 389 million tons. In the first half of STD seamless steel pipe ASME B36.10m the cement is more than 1 billion tons, growth of 9.7%.
Analysts believe that at the current speed, at the end of the twelfth five-year annual steel production capacity will reach 1 billion tons. Real estate, makes the rapid development of steel. 2008 investment in 4 trillion, but also for pulling large iron and steel industry. Iron and steel enterprises is still in the small profit, now can't production.
Because a shut down production line, the blast furnace construction required a lot of investment from bank loans for capital, equipment suppliers, wages system and a series of funding pressure. False a compensate SanJia one of threey do not shut down production, so the capacity is on the rise." Zhang Lin said.According to understand, at present, in fact, a large number of schedule 80 galvanized steel pipe steel production capacity in suspended or idle state. Such as baosteel steel project in guangdong zhanjiang harbour, wisco in guangxi fangchenggang steel projects, and so on. And in urumqi, xinjiang bayi iron and steel in steel mills, originally estimated 10 million tons of production capacity, the actual performed only 8 million tons.
Ministry of industry, according to a report released at present, the steel market supply and demand imbalance. Steel prices continue to fall on the one hand, the enterprise production and business operation difficult, or even losses, rapid release capacity on the other hand, the R=5D 45 degree long radius eblow enterprise production intend. Investigate its reason, the enterprise mainly worry about the loss of market share, to prevent the risk of foreclosure, the pressure from the local economic growth, enterprise weighing such factors as the marginal benefit.
From the view of the industry as a whole there is almost no active production enterprises, the production capacity of rising steel market continues to weaken.
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