NDRC: positive results achieved on capacity removal of steel and coal this year
2017-05-26 13:01:59 [Print]
According to news from National Development and Reform Commission (NDRC), the capacity removal of steel and coal has seen positive results this year with respectively 63.4% and 46% annual target completed so far.
Capacity removal is an important task in structural reform of supply side. In 2016, the steel and coal production removal has made crucial phased achievements based on tasks completed ahead of schedule; remarkably industrial improvement and optimizing industrial structure.
In 2017, the removal task continues and still generates satisfactory results. Up till now, 31.7 million tons of steel capacity has been eliminated in China, registering a completion of 63.4% of annual target; coal capacity has been removed by 68.9 7 million tons, 46% of annual target. With the progressing capacity removal of coal and steel, the economic structure is being optimized in accompanied with outdated capacity replaced by the new. Positive results are gradually unveiled, which are highlighted in the following aspects. Firstly, economic benefits improve significantly. In Q1, members of China Iron and Steel Industry Association see year-on-year losses of RMB8.75 billion to profit of RMB23.28 billion. Secondly, payment arrears of social security and salaries have reduced. Up till late March, accumulated salaries arrears and social security from coal enterprises in Shanxi have respectively reduced by 58.4% and 10.8% from late 2016. Thirdly, the industrial structure is upgraded. Premium capacity further performs attractively in leading industrial structure. Fourthly, the market competitiveness order improves obviously. By way of the elimination of backward, illegal construction projects and the three special actions of joint legal enforcement, the market environment of “survival of the fittest” is further sorted out.
Capacity removal is an important task in structural reform of supply side. In 2016, the steel and coal production removal has made crucial phased achievements based on tasks completed ahead of schedule; remarkably industrial improvement and optimizing industrial structure.
In 2017, the removal task continues and still generates satisfactory results. Up till now, 31.7 million tons of steel capacity has been eliminated in China, registering a completion of 63.4% of annual target; coal capacity has been removed by 68.9 7 million tons, 46% of annual target. With the progressing capacity removal of coal and steel, the economic structure is being optimized in accompanied with outdated capacity replaced by the new. Positive results are gradually unveiled, which are highlighted in the following aspects. Firstly, economic benefits improve significantly. In Q1, members of China Iron and Steel Industry Association see year-on-year losses of RMB8.75 billion to profit of RMB23.28 billion. Secondly, payment arrears of social security and salaries have reduced. Up till late March, accumulated salaries arrears and social security from coal enterprises in Shanxi have respectively reduced by 58.4% and 10.8% from late 2016. Thirdly, the industrial structure is upgraded. Premium capacity further performs attractively in leading industrial structure. Fourthly, the market competitiveness order improves obviously. By way of the elimination of backward, illegal construction projects and the three special actions of joint legal enforcement, the market environment of “survival of the fittest” is further sorted out.
