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Suggestions on steel industry adjustment

We will create greater development space for the main players of steel pipe suppliers, improve operating rules, create a fair, open and transparent steel market environment, and achieve the goal of smooth market access, orderly opening, full competition, and orderly and standardized modern steel market governance.

In line with the spirit of the fourth plenary session, the market should play a decisive role in allocating resources, curb the disorderly growth of production capacity and reduce government administrative intervention.By the way of market competition, survival of the fittest. At the same time, to increase the punishment of illegal, illegal enterprises.

Capacity replacement policy is very necessary to optimize the layout of production capacity of mild steel tube, played an important role. With the improvement of the technical level and the change of the situation, the capacity replacement should be adjusted and improved under the new situation and conditions.
(2) concentration should be scientific.
The concentration of China’s steel industry should not copy foreign experience, but follow the path of Chinese characteristics. For example, the concentration of electric furnace steel cannot be too high, but should be based on resources and the market, with low logistics costs as the condition, mainly with the production of construction steel, scale of 1 million to 2 million tons, the layout should be spread all over the place.

To improve the concentration degree, it is necessary to classify and determine reasonable objectives. Through market competition and government coordination, the concentration degree requirements of a certain class and certain steel types such as structural steel pipe are gradually formed. It is not suitable for the development of China’s iron and steel industry to set the concentration target in a general and blind way. The improvement of concentration degree is mainly realized through enterprise integration and reorganization. We should make full use of the combination of the market allocation of resources and the important role of the government to promote the merger and reorganization of iron and steel enterprises.
(3) enhance the ability to safeguard iron resources and solve the problem of import of scrap steel
The fundamental reason for the low tide of short process steel-making is the lack of scrap resources, high production cost and loss of market competitiveness.With the increase of social scrap steel resources year by year, the advantages of scrap steel will gradually emerge. First, the state should fully develop scrap resources and import more scrap, adopt encouraging measures in the policy of importing scrap, remove import restrictions, and improve the tax administration of scrap acquisition.It is suggested that the square steel pipe be transferred to the “restricted import goods management catalogue”, as a free import goods management.

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