To capacity "should be administrative and market-oriented and two kinds of means

Since this year, iron and steel industry as a whole still difficult operation. , according to data from July 1 to China's crude steel production growth of 7.1% year-on-year, while only 2.1% increase over the same period of last year. Rapid release capacity and demand does not match that of slow market oversupply, schedule 40 hot dipped galvanized steel tubing and form a small profit. July 1 to industry average profit rate is only 0.23%, the main business is on the verge of loss.

Iron and steel industry at present the small profit condition is the enterprise for a long time of expansive development mode and extensive management mode of the result of joint action. "Rome was not built in a day", 180 degree short radius elbow manufacturer the reason of complexity and the change of domestic situation determines the difficulties there will be a long time. "I'm afraid this period lasts 5 to 10 years." Held by the China iron and steel technology in high-end economic BBS, former dean of Chinese academy of engineering, China society of metal Xu Kuangdi thought.

Mr Xu, chairman of baosteel, China's iron and steel association, said, "now the whole steel industry has not yet reached the downturn, just entered the 'late autumn season, Industry Standard Welding Neck Flange the real" cold winter "are yet to come, steel capacity comprehensive surplus pattern cannot fundamentally change in the short term, the challenge for the next 10 years the iron and steel enterprises will be more and more big. Factors of production costs rising, environmental resources pressure increasing, the economic situation reversed transmission from large-scale iron and steel enterprise's investment in fixed assets to meet the market demand of extensive growth mode, to give priority to with structure adjustment and transformation and upgrading of development model."

At present, our country is in economic transition period, API 5L steel pipe wall thickness 50mm growth in steel demand has slowed, and the world economy is in a slow recovery, so, no matter from the domestic market or international market is supply greater than demand. At the same time, because the steel equipment manufacturing capacity, strong construction strength, as well as the investment cost greatly reduced, the steel industry has been out of the inheritance of "difficult to get out of the" into "yi jin out hard" industry, which makes the rapid increase of steel production capacity greatly enhanced, even if the market demand, will be quickly has formed the production capacity and new capacity to fill.