On the one hand, a new round of overcapacity reduction is accelerated, and on the other hand, the capacity replacement is updated. The steel industry with improved operation in the first half of this year is ushered in a new round of policy baptism. How can steel enterprises respond to changes in the industry?Recently, the reporter interviewed a number of industry experts, they said that the merger and reorganization will be a breakthrough to improve the development of steel enterprises, the concentration of the steel industry is expected to further improve.On June 18, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the State Energy Administration and other departments jointly issued the Notice on resolving overcapacity in Key Areas by 2020, requiring deepening supply-side structural reform and comprehensively consolidating the achievements in overcapacity reduction.The circular requires that regions that have yet to meet the market targets for reducing crude steel capacity should continue to use market-oriented and law-based measures to ensure that the "capacity reduction" targets will be fully completed by 2020.At present, many places have announced the arrangement of the steel industry overcapacity reduction work.Taking Hebei Province as an example, its subordinate cities have begun to implement the Work Plan of Using Comprehensive Standards to Promote the withdrawal of backward Production capacity in accordance with laws and regulations issued by the Leading Group Office of Eliminating backward Production Capacity in Hebei Province.Among them, Tangshan, with the most intensive distribution of domestic steel capacity, has eliminated a total of backward production capacity of 192 enterprises, all of which are medium frequency furnace equipment, and the elimination method is "sealed" or "demolition".Handan City plans to integrate the number of steel enterprises from 17 to about 8 by 2020; Anyang City requires to basically complete the restructuring of steel enterprises, equipment capacity replacement, environmental protection upgrading this year, the proportion of planned special steel to more than 30%, the number of enterprises from 11 to 4.
Shanxi province released the transformation and upgrading of steel industry action plan in 2020, in 2019 to promote 22 steel industry upgrading on the basis of the project, plan to build special metal materials in Shanxi Province industry cluster innovation ecological and billions of industry cultivation as the focus and main direction, comprehensively improve the iron and steel industry independent innovation and science and technology leading ability.Industry insiders said that in 2016, the state put forward the goal of five the steel industry to reduce excess capacity, which was completed early in 2018 and completely removed "strip steel".Now, a new round of "overcapacity reduction" has been launched, with the purpose of "looking back" at the overcapacity reduction projects in the steel industry and consolidating and finishing the work of the previous two years.Tianfeng securities steel industry chief analyst Ma Jinlong said, early steel industry to capacity supply side structural reform is obvious, the industry from 2015 to 2016 to profit, at the same time, the whole industry liability ratio fell from more than 70% to the current about 50%, " from the magnitude, this year compared with the peak of 2017,2018 gap, so the impact on the industry is not obvious."Ma Jinlong said.Wang Guoqing introduced, in recent years, there are still some enterprises around not timely shut down by replacement capacity, old capacity to enter the market, and this year as the end year of much starker choices-and graver consequences-in plan, is also key industries such as steel and coal "capacity" closing year, a new round of overcapacity is the necessary measures to consolidate the work results.In addition to "cutting overcapacity", the steel industry will also be "updated".In order to strictly prohibit the new production capacity of the steel industry and promote layout optimization, structural adjustment and transformation and upgrading, the Ministry of Industry and Information Technology issued the latest version of the Implementation Measures for Capacity Replacement of the Steel Industry (Draft) (hereinafter referred to as the 2020 version) on July 24.Compared with the 2017 revised draft, the 2020 version of the replacement method has further improved the details of key areas and production capacity replacement ratio.For example, the key areas of the measures are the Beijing-Tianjin-Hebei region, Yangtze River Delta, Pearl River Delta and Fen-Wei River Plain and other "2 + 26" air passage cities, including 46 provinces and cities and demonstration zones.The replacement ratio in key areas shall not be less than 1.5:1, and that in other regions shall not be less than 1.25:1. Previously, the regions of the implementation of the measures mainly referred to the Beijing-Tianjin-Hebei, Yangtze River Delta and Pearl River Delta, with a replacement ratio of no less than 1.25:1, and a replacement reduction in other regions.In this regard, Ma Jinlong believes that due to the continuous progress of production technology and the continuous improvement of enterprise production efficiency, the steel industry also has the more production capacity, the more production contradictions."China's crude steel output has also reached new highs. The revision of the capacity replacement measures improves and closed various indicators, which can maintain the results of supply-side structural reform, promote the cross-regional flow of production capacity and improve the level of equipment technology."Ma Jinlong said that in terms of the impact on the industry, but also according to the local implementation, but at present, the steel industry must tighten the production capacity replacement, and then control the production capacity.Recently, Lv Guixin, the raw materials department inspector of the Ministry of Industry and Information Technology, said that with the continuous progress of production technology and the continuous improvement of production efficiency of enterprises, the steel industry has appeared the contradiction of production capacity reduction and production growth."Under the general trend of industry reduction and development, there is a practical need to further improve the proportion of production capacity replacement."Lv Guixin said that in the current important window period of industry merger and reorganization, the production capacity replacement policy adopts the checklist management mode, which provides a reference for the steady withdrawal of excess capacity and the orderly progress of new production capacity. At the same time, it can play a greater role in promoting the development of short-process steelmaking process and improving the industry concentration.
Steel enterprise merger and reorganization is accelerating What kind of impact will the policy level changes bring on the steel enterprises?Industry insiders said that under the guidance of the policy, the steel industry concentration is expected to further improve, the merger and reorganization of steel enterprises is also accelerating.At present, A-share steel enterprises merger and reorganization has been hot up.SangMinuang announced on June 2 that it plans to acquire the 100% stake held by Sanguang Group with its own capital of 2.152 billion yuan.Sanggang Minuang said that the acquisition is conducive to the smooth implementation of the company's production capacity replacement plan, and further promote the company's industrial transformation and upgrading and the realization of coastal strategy.At the same time, it will also add an additional annual steel output of about 1.9 million tons.Shougang shares announced on June 13 that it will replace 1.029 billion domestic shares of Beijing Automobile with Shougang Trade 51% shares held by Shougang Group.After the completion of the transaction, the company held Shougang Steel Trade, and, Shougang shares of Shougang Jingtang Steel Joint Co., Ltd. shareholding ratio rose to 80.82%.The company said that after the completion of the replacement, Shougang industrial chain construction will be further improved, is conducive to the close coordination between production and sales, improve the integration of production and sales and research management capacity.In view of the impact of the new regulation on steel enterprises, the analysis said that the increase of key areas means that the replacement ratio of 1.5:1 is larger, the overall scale of replacement is larger than in 2018, and the new capacity is reduced accordingly.For example, according to the original capacity of 2 million tons, the new capacity was 1.6 million tons in 2018, the new capacity in 2020, the capacity was 1.33 million tons, and the capacity was reduced by 270,000 tons.In addition, in view of the 2020 version of the new rules for the substantive merger and reorganization of enterprises "key areas in accordance with the ratio of not less than 1.25:1, the replacement ratio of other regions is not less than 1.1:1" requirements, the analysis believes that some enterprises in capacity replacement or completed may need to re-evaluate and effectively replace according to the new standards.As for the next direction of the industry, some experts believe that the future steel industry will be the mode of "intelligent manufacturing + green development". On the one hand, steel enterprises will become bigger and stronger through technological transformation, merger and reorganization to enhance the concentration of the steel industry; on the other hand, to make breakthroughs in the ultra-low emission transformation to build a green industrial chain.
