“This type of (coal-type) restructuring idea is not ruled out.†In an interview with reporters recently, officials from relevant departments and bureaus of the Ministry of Industry and Information Technology stated that the adjustment and revision of the new “Iron and Steel Industry Development Policy†has come to an end and participation in the preparation of the policy All the ministries and commissions "have agreed to push forward mergers and reorganizations." The adjustment and revision of the “Iron and Steel Industry Development Policy†was led by the Ministry of Industry and Information Technology.
Since September this year, Shanxi Province has taken the lead in integrating small coal mines. The tough policy has directly led private capital to withdraw from the coal market as a whole. Later, the major coal provinces, including Inner Mongolia and Shandong, also heard the “learning Shanxi modelâ€. The reporter recently learned that related ministries and commissions will soon issue relevant documents that will further accelerate the merger and reorganization of the coal industry, and try to promote the Shanxi model nationwide.
"The government's introduction of a mandatory policy is also a frustrating move." Researchers from the National Development and Reform Commission told reporters that although Shanxi coal reorganization has triggered a huge controversy about "advancement of the country by the people," it has at least effectively promoted the overall strategy of the country's economic restructuring. "The integration of iron and steel has been going on for quite a long time and there has been little success so far." According to the latest report of Everbright Securities, without considering the elimination of backward production capacity, the steel production capacity in 2010 will reach 758 million tons, compared with the consumer market of more than 500 million tons. The surplus is widening.
According to the plan of the National Development and Reform Commission, outdated ironmaking capacity will be eliminated by 10 million tons and steelmaking by 6 million tons this year. By 2011, 72 million tons of outdated ironmaking capacity and 25 million tons of steelmaking capacity will be eliminated. This means that China's steel companies will eliminate more than 100 million tons of steel production capacity within three years, "equivalent to the reduction of nearly 200 small and medium-sized steel enterprises." Jiang Qian, chief researcher of China Investment Advisor Energy Industry, said that the number of steel companies in China exceeds Thousands, but the average size of crude steel production enterprises is less than 1 million tons, and the scale of small and medium-sized steel enterprises can be imagined.
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