China's steel industry or potential of more than 60 million tons of potential

Abstract The Ministry of Industry and Information Technology recently announced the third batch of 147 steel companies that meet the "Regulations on Steel Industry Standards" (hereinafter referred to as "Conditions"). At this point, this document, known as the "white list" of the steel industry, has been going through three years...
The Ministry of Industry and Information Technology recently announced the third batch of 147 steel companies that meet the "Specifications of the Steel Industry" (hereinafter referred to as "Conditions"). At this point, this document, known as the “white list” of the steel industry, has been published in three batches in three years to announce the list of 305 regulated companies.

In the industry's view, the biggest role of this "white list" is to force the "latent" steel production capacity to be exposed to the surface for many years, to minimize the blind spots in the steel industry management, and to promote the contradiction between the standard operation of the steel industry and overcapacity.

Liu Haimin, deputy director of the Metallurgical Industry Economic Development Research Center, said in an interview with the Securities Daily that "the Ministry of Industry and Information Technology announced the "conditions" that some of the lurking steel production capacity has surfaced. However, it is conservatively estimated that there are still more than 60 million tons this year. The steel production capacity is 'deeply hidden'. It can be said that the "conditions" can only be said to play a role in promoting the current overcapacity problem in China's steel industry, rather than determining the role."

"white list" order

Excess capacity is more transparent


As one of the specific measures to implement the State Council's transformation of government functions and strengthening post-event supervision, the Ministry of Industry and Information Technology revised and announced the "Conditions" in 2012, and in accordance with certain technical, quality, environmental protection, equipment and other conditions, the existing domestic steel enterprises Incorporate into the scope of regulatory management and recognize it.

Combined with the previous lessons, China's steel industry mainly controlled production capacity through pre-approval methods. Due to the lag behind market demand, the production capacity was not good. According to statistics, since the release of the "Steel Industry Development Policy" in 2005, China's steel projects approved by China have been less than 100 million tons, but the national steel production capacity has increased by more than 700 million tons. A lot of production capacity is outside the management of the industry.

The Ministry of Industry and Information Technology announced that the biggest role of the "conditions" is to dig up these free steel production capacity. The Ministry of Industry and Information Technology also said that for enterprises that meet the requirements of the standard, the Ministry of Industry and Information Technology and the relevant departments support development, promote cross-regional, cross-ownership and regional mergers and acquisitions, and implement Technological transformation of enterprises, optimization of industrial structure and regional layout, structural adjustment and transformation and upgrading. For enterprises that do not meet the requirements of the standard, comprehensively apply economic, legal and necessary administrative means, gradually reduce their living space, force them to withdraw from the market, and promote the resolution of excess capacity.

Lange Steel Network analyst Zhang Lin told reporters that the Ministry of Industry and Information Technology announced 305 steel enterprises in the past three years, which is basically the preliminary specification of the steel industry. "Objectively speaking, the threshold for the demand for steel enterprises in the "white list" is not very high, and the pressure on steel enterprises is not great. In the past, the government also issued a document to urge all localities to eliminate the steel plants in their own jurisdictions, but No more details of the elimination were announced to the public, only the total amount of production capacity was announced, which proves that the steel enterprises have completed the elimination tasks issued by the higher authorities. Now it is through the preliminary review to announce the steel mills on the online standards. The list, the iron and steel steel rolling and other equipment, who meets the regulations, at a glance, more transparent, can also be better supervised," she said.

"White list" is not covered

Still have a lot of capacity to dive


In Liu Haimin's view, although the steel enterprises that meet the "Conditions" have played a role in controlling excess capacity, this is by no means the main way to solve the problem of overcapacity in China. "This method is useful, but it is still not thorough, because some The 'Haihu' steel mills are still not known. Although these small steel mills are small in size, they are still small, and the sum of production capacity is still amazing."

According to the latest data from the National Development and Reform Commission, from January to October this year, the country's crude steel output was 6,853,800 tons, a year-on-year increase of 2.1%, and the growth rate slowed down by 6.2 percentage points year-on-year; steel output was 93.447 million tons, up 4.7%, a decrease of 6.9 percentage points.

Liu Haimin told reporters that "the crude steel output in the first 10 months of this year was 6,852,800 tons, and the steel output was 9,344,700 tons. The steel output was about 249 million tons more than the crude steel output. Of course, this included steel duplication in the production process. The rolling process, but even taking this into account, there is still a lot of capacity, which shows that there is still a large amount of steel production capacity can not find the source."

Liu Haimin told reporters that it is conservatively estimated that this year's "headless" production capacity will be about 60 million tons to 100 million tons. "In recent years, such steel latent production capacity will not be less than 50 million tons per year, even if the "conditions" can play a role in allowing only part of the production capacity to be carried out during the day."

Liu Haimin told reporters that the real control of production capacity, relying on two kinds of weapons, the first is the law; the second is to rely on the market to adjust spontaneously, "the way through administrative means is not to use".

It must be noted that even if steel enterprises have already been on the “white list” of steel enterprises, they are not once and for all. The relevant persons of the Ministry of Industry and Information Technology also stated that enterprises with standardized conditions explicitly require dynamic management of the list of announced enterprises and cannot maintain regulatory conditions. Will be disqualified. The Ministry of Industry and Information Technology will conduct random checks on the announced enterprises and encourage all sectors of the society to supervise.

“Like Shanxi Haixin Steel, even if it has entered the 'white list', but now Haixin has entered the bankruptcy reorganization process, such steel enterprises are also to be delisted, but this list is mainly for those steels that are not environmentally friendly. Enterprise, Haixin should belong to a special situation." Zhang Lin said.

Yangzhou Chengde (YC) is one of the best pipe manufacturers in the world, and the production diameter from 8" to 48" in OD and wall thickness from 9.53 mm up to 140mm. We can produce the A/SA53 steel pipes according to the ASME SA53 and ASTM A53 standards.

Yangzhou Chengde founded in 1988, always insist on innovating and creating excellence. At present, the total assets is 6 billion RMB, the number of staff is 3000 and cover an area of 2080 acres of the Chengde group. Chengde group is  the first echelon in national brand on seamless steel pipe and including 4 sections: Jiangsu Chengde incorporated company, Yangzhou Chengde Steel Pipe Co., ltd, Yangzhou Chengde Heavy Industry Co., ltd and Taizhou Chengde Steel Pipe Co., ltd.

Chengde have been working on the research.manufacture and sale of seamless pipe about 30 years, and the advantage of core competence is more prominent by integrate in technical.management and market with PCC.

1 The Piercing and rolling technology of Chengde possesses a number of patents in designing and manufacturing the equipment. The production is efficient and flexible, and the quality is stable.

2 The material grade is complete, and the size range is wide (three produce line can manufacture all non-standard sizes).  The Minimum Order Quantity (MOQ) as low as ONE piece, and the date of delivery is short with excellent cost performance.

3 The sales and service team is professional and localize.



ASTM A53 Steel Pipe



ASTM A53 Carbon Steel Pipe

Astm A53 Pipe,Sa53 B Pipe,Astm A53 Carbon Steel Pipe,Astm A53 Carbon Steel Tube

YANGZHOU CHENGDE STEEL PIPE CO.,LTD , https://www.chengdepipe.com