Chinese iron and steel industry regional planning analysis

Abstract: The steel industry is built on the basis of the national economy, career, rational planning of the steel industry contribute to regional economic and reasonable and orderly development. In the context of economic transformation and the construction of ecological civilization, the steel industry is facing overcapacity, the deterioration of the business environment and environmental pressures unprecedented problems. In this context, analysis of the future demand for steel, steel reasonable judgment capacity, adjust and optimize the iron and steel industry development plan for the steel industry restructuring and upgrading of great significance. Under the new normal, a more advanced form of the Chinese economy forward, the division of labor is more messy, more structured evolution stage, the steel industry plan big changes will also enter a new phase of major adjustment.
Hainan Steel
First, the Chinese steel industry status quo of regional planning

2014, China's crude steel production 820 million tons, more than 20 million tons of steel production provinces increased year by year, 2014 increased to 12, respectively, Hebei, Jiangsu, Liaoning, Shandong, Shanxi, Hubei, Henan, Anhui, Tianjin, Sichuan Jiangxi and Guangxi, the Bohai Rim region and the central region of the eastern coastal region is still China's two largest steel-producing regions.

Steelmaking capacity of dispersal and spread similar yield spread capacity is concentrated in several provinces and the central region of the Bohai Sea provinces. Where steelmaking capacity in North China region accounted for 35% of the country, followed by East region, Central South region, the Northeast region, southwest region and northwest region.

"Twelfth Five-Year Plan" requirements of the steel industry during the second five new restrictions simply to expand production capacity. Industrial planning to zoning, Northeast, North China region will be reduction adjustment, enhance innovation; South, Southwest will follow the same amount of phase-out, the transformation development principles upgrade; the western region will have a modest increment across development.

2015 is the "second five" last year, the past four years, China's total elimination of backward production capacity of 81.915 million tons, out of a total of 2 million tons more than 10 provinces, most of the 30 million tons of Hebei Province, followed by Hubei , Shanxi, Henan, Shandong, Guangdong, Anhui, Jiangsu and Sichuan, fit five-year plan from the regional point of view requirements. But in the aggregate, "five-second" period, China's crude steel production capacity of 400 million tons added, rising from 760 million tons in 2010 to 1.16 billion tons by the end of 2014, the so-called "reduction adjustment" and "an equal amount elimination "did not reach, while the western region of the" moderate increment "is changed to the rapid growth expected to be sent to the northwest region of Xinjiang region, especially from the" lack of steel less steel "became another serious overcapacity area. Sleepy regional planning of the steel industry is not optimistic.

Second, the Chinese steel industry Regional Planning Features

One more little east west, North-South light. From the perspective of geographical spread, yield and production of steel can focus are concentrated in northern and central eastern region, Chinese steel mills in northern regions get together, the northern region's crude steel production capacity accounted for 60% of the country at the mercy of Liaoning, Hebei, once "owned Steel is king. " Bohai Rim region is also lined steel production over 300 million tons, severe oversupply, approximately half of the production require external digestion. The Southeast region is persistent lack of large steel mills, the relative lack of supply. Guangdong, for example, steel consumption in Guangdong has reached 61 million tons or so, 10 percent of the national total spending spending accounted for steel, while steel production in Guangdong in 2014 only 34.47 million tons, a year still need a lot of steel from Northern shipped over, some need to be imported.

4 stars provinces steelmaking capacity (Unit: million tons)

The second is more inland and less along the coast. Since the 21st century, China Baosteel, Caofeidian, Anshan Iron and Steel Bayuquan steel industry, represented by the coast type planning strategy to gradually push, but the effect is not ideal. In recent years, along with all the weakness in the steel profession, has built Caofeidian Jingtang Steel and Angang Bayuquan project items are exposed to suffer losses, funds increasingly difficult, slow progress in the latter part of the project. Baosteel Zhanjiang Port project in the blast after a decade of One just on the line, Wuhan Iron and Steel Fangchenggang project completion is even more elusive. It can be said to promote the China Iron and Steel Industry coastal planning strategy is slow, on the whole, Chinese steel companies really Riverside waterfront is still small, a small proportion of the steel industry is still dominated by companies landlocked pattern.

Third, relying on the type of capital-based pattern has not fundamentally changed. For a long time, China's steel industry plan is to use the principles of domestic capital and close to the commencement of iron ore raw materials, steel and planning not only scattered, but a considerable number of steel production capacity from the market, causing a lot of steel to go through long-distance transport, resulting in the company's increase and decrease the competitiveness of logistics costs. National Development and Reform Commission analysis report pointed out, in contrast to developed countries, China's steel industry concentration is still low, more number of companies, small-scale, decentralized planning situation has not been fundamentally changed, from the professional point of view does not have all the initiative to control production according to market needs , the ability to maintain a reasonable price. At present China's steel industry has continued relying on capital-based planning. Hebei's crude steel production and ore production rank first in the country's provinces, northeast Anshan Benxi Iron and Steel, Baotou, Inner Mongolia, Shanxi, Taiyuan, Anhui Maanshan Iron and Steel, Panzhihua in Sichuan, Gansu Jiuquan Steel, Xinjiang Bayi Iron & Steel and other companies are in when the subway developed ore capital base, they still are an important iron and steel production base in China.

Fourth, the water area than the major iron and steel production. Key Statistics Company nearly 60 percent scattered in water-scarce regions, nearly 30 percent scattered in severe water shortage area. North China region per capita water attributed to the severe shortage of capital is below 500m³ region, but the scale of production of crude steel was ranked first, accounting for 35% of the country.

Fifth, steel city-planning significant. Chinese steel companies have a large part in the city, a considerable part of the steel company is located in the capital city or regional center city, "City-type" steel characteristics significantly. According to statistics, China's 75 key steel company has 18 built in the municipality and the capital city, there are 34 million people in more than build cities. Hainan Steel

Third, the development trend of China's iron and steel industry planning

"Thirteen Five" when the global economic recovery is delayed, the changing world situation clutter. Affected by restricting China's economic development so-called "three overlay" feature is enlarged, forcing the Chinese economy has entered a "new normal" economic downward pressure. GDP in the third quarter of this year fell to 6.9%, further increase the downward pressure on the annual projected 7%.

In accordance with the past relationship between GDP and spending strength steel, GDP7%, iron and steel should grow at 3%, but in fact may not be achieved. Because the composition of GDP is changing, in investment, exports and spending "troika" in the past funded contribution rate has been above 50%, while spending less than 35%. Because the iron and steel "is the development of" the main driving factor is the contribution, and therefore under the condition of a high proportion of high investment spending strength steel; spent and invested in the future contribution rate to transposition, ie 30 per cent funded, spending 60% The cost can not pull the steel demand, followed by a substantial decline in the proportion of investment, steel demand shrinking, the same GDP, spending steel strength greatly decreased, and therefore can not be driven by a 7% GDP growth of 3 percent of steel.

On the other hand, with the technological progress of progress especially in manufacturing, iron and steel takes strength is declining. Chinese steel with highly fortified, steel reduction trend has become increasingly significant.

Former State Bureau of Metallurgical Zhao Xizi that "one is to change the composition of GDP, one is to change the investment constituted superposition of these two elements, the Chinese spend the declining strength steel, 2005 steel consumption yuan GDP more than 200 kg, 2007 dropped to 174 kg, in 2014 only 110 kilograms, fell by an average 12 kg per year in 2014, even before descending in accordance with the speed, "Thirteen Five" will be reduced to 50 kg mercy;. then GDP under the new economic normality structure and funding constitute two elements into consideration, "Thirteen Five" weekend down 20-30 kg. If the GDP "Thirteen Five" during the annual increase 3.6 trillion dollars, an increase of 720 to 9,000,000 tons of steel per year is enough a. "

Therefore, "Thirteen Five" period, China's steel industry is no longer planning to simply adjust the main, but the industrial upgrading as the main theme.

First, the new iron and steel industry planning will be "going out" as the goal, with the "along the way" of development opportunities in the regional market strategy driven by the construction of the steel supply base from the beginning, and gradually promote deep processing, distribution until the construction of an appropriate scale steel plant.

Second, the domestic existing spatial planning will continue to optimize. Actively promote the central city urban steel restructuring and moving transformation, to achieve a useful focus to domestic steel production companies and more comparative advantages of regional advantages. Major projects mainly rely on domestic energy and mineral resources of major capital project priority planning in the Midwest, the main priority in the use of imported capital coastal border regional planning, orderly city of iron and steel, nonferrous metals, chemicals company's environmental move, to guide the production elements of gathering relying national key project to create a number of world competitive manufacturing companies to chain as a link to the development of the industrial park as a carrier group of professional distinctive features, outstanding brand image, service platform complete modern industrial clusters.

Finally, on the industrial scale, domestic steel production capacity will vigorously promote the consolidation and reorganization, to 2025, the top ten steel companies (Group) crude steel production accounts for the proportion of not less than 60%, the formation of three to five large steel company group . Hainan Steel