久久亚洲国产成人影院-久久亚洲国产的中文-久久亚洲国产高清-久久亚洲国产精品-亚洲图片偷拍自拍-亚洲图色视频

USEUROPEAFRICAASIA 中文雙語Fran?ais
China
Home / China / Top Stories

Steel capacity not just a China problem

By Li Xinchuang | China Daily Europe | Updated: 2016-05-29 15:01

Nation faces challenges from high debt and risks to social stability, but progress is being made

China, together with other countries and regions, is facing severe challenges from overcapacity in steel production, which requires the joint efforts of international players to solve.

During the 12th Five-Year-Plan (2011-15), China cut around 90 million metric tons of crude steel capacity. At present, China's steel capacity is more than 1 billion tons.

The utilization rate is below a reasonable level, which led to an industrial operating margin of negative 2.23 percent, and many small-sized companies have gone bankrupt due to losses.

Even so, the country plans to cut crude steel capacity by another 100 million to 150 million tons in the next five years, according to the 13th Five-Year-Plan (2016-20).

It shows that the country has done, and is still doing, lots to help solve the global oversupply problem in the steel industry. China's large and medium-sized steel companies are leading these efforts and are determined to cut overcapacity.

Hesteel, formerly Hebei Iron and Steel Group, for example, plans to cut 5 million tons of crude steel capacity by the end of next year.

Steel capacity not just a China problem

The United States' steel industry should stop its narrow-minded understanding of China's steel business and take responsibility, together with China and the steel industries of other countries, to reduce overcapacity, which is a historical task for all of us.

Reducing overcapacity is a challenging process; it involves huge numbers of employees, large amounts of debt, and risks social stability. It's a task that takes a long time, strong perseverance and full preparation.

For China, particularly, there are several difficulties.

First, up to 500,000 employees in the steel sector will need to find a new job to achieve the country's capacity reduction goal.

Although some companies have transferred employees smoothly through detailed preparation and high costs, others are unable to do that because of a shortage of capital or local policy support. The large number of people who will lose their jobs will bring uncertainty to society.

In addition, another big headache for steel companies is money. Due to the falling steel prices in the past several years and weak demand, some steel companies have become "zombies".

Zombie companies are economically unviable businesses, often in industries that have severe overcapacity, and have been kept alive long after they should have died thanks to money poured in by governments and banks.

Zombie companies often have complicated debts concerning upstream and downstream companies. If those problems cannot be solved, a new debt crisis will be created for individuals and companies in the industrial chain.

China's steel companies' debt ratios average around 70 percent, and in some cases it is higher.

For instance, Shanxi Haixin Iron and Steel Group, established in 1987, has more than 900 creditors and total debts of 23.4 billion yuan ($3.5 billion; 3.1 billion euros). The company owes 7 billion yuan alone to China Minsheng Banking Corp Ltd. However, its book assets totaled only 6.9 billion yuan.

Another steel company has a severe wage arrears problem of more than 360 million yuan.

Such debt issues are hard for the local government or a single company to solve.

Last but not least, steel companies usually play an important role in a local economy, more so in areas where steel is the pillar industry. If a steel company goes bankrupt and the local government is not ready for economic development transformation, it may trigger a dramatic slump in the local economy and lead to further social instability.

The US, Japan and European countries have spent more than 10 or 20 years solving the overcapacity issue in their steel sectors. The scale of China's reduction plan is much bigger than that of those countries, which means China is facing much more difficulties.

At present, the utilization rate of the world's steel capacity is around 66 percent, and that of China is 71 percent. So, we have to be clear that steel overcapacity is not China's problem, but the world's problem, and it should be solved by all parties.

Steel, a material widely used in construction and other applications because of its high tensile strength and low cost, has made an unprecedented contribution to global economic development and human civilization.

In the future, it will continue to play an important role in the world's economy because of its high quality, low cost and greenness, even though it will face competition from other advanced materials.

Everyone in the steel industry should focus on working harder to meet the growing requirement of clients and spend more passion on technology innovation and new applications.

The author is the head of the China Metallurgical Planning and Research Institute. The views do not necessarily reflect those of China Daily.

Editor's picks
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 久爱www免费人成福利播放 | 亚洲干综合 | 欧美成人在线视频 | 日韩欧美一级a毛片欧美一级 | 香蕉久久a毛片 | 国产成人综合91香蕉 | 高清大学生毛片一级 | 久久精品久久精品久久 | 国产精品亚洲视频 | 亚洲在线中文字幕 | 亚洲精品免费观看 | 日本aaa毛片 | 成人男女网18免费看 | 久热国产视频 | 免费一级毛片在线播放欧美 | 99久久精品费精品国产一区二 | 国产在线视频h | 三级国产三级在线 | 99久久免费国产香蕉麻豆 | 欧美视频在线观看网站 | 特级一级毛片免费看 | 亚洲第一成年免费网站 | 特黄特色大片免费播放路01 | 看久久久久毛片婷婷色 | 男女那个视频免费 | 国产成人一区在线播放 | 日韩在线中文字幕 | 欧美成人午夜片一一在线观看 | 亚洲欧美色视频 | 亚洲成年男人的天堂网 | 中文字幕 亚洲一区 | 国产精品午夜免费观看网站 | 国产精品黄网站免费进入 | 中日韩精品视频在线观看 | 午夜不卡在线 | 中文字幕日本一区波多野不卡 | 在线播放日韩 | 日本一区深夜影院深a | hd欧美xxx欧美极品hd | 亚洲欧美一区二区三区不卡 | 中文精品视频一区二区在线观看 |