More and more intense: the potential of iron and steel to production capacity needs to be strengthened      

Since April, the price of steel in China has increased significantly, which has been very intense in recent years. Before that, some iron and steel enterprises that stopped working also had signs of resuming work.

In this regard, the national development and Reform Commission, the relevant responsible person said at a regular press conference, according to the parties to collect information, the steel prices, driven by policy expectations, market speculation and short-term factors, the relationship between market supply and demand has not changed, steel overcapacity situation has not changed, steel prices continued to rise rapidly to.

The person in charge pointed out that the recovery of steel prices had a certain impact on the solution of overcapacity, but the overall impact was small. Learned from the current perspective, the resumption of production capacity for compliance capacity, does not belong to out of range, enterprise production production are adjusted to cope with the market changes, the normal production and management behavior.

It is understood that, since last 12 months of last year, the domestic market steel prices have entered the recovery channel. After March this year, the recovery rate of steel prices has accelerated significantly. By the end of 4, the steel price index released by China Iron and Steel Association rose to 84.66, an increase of 11.47 points over the same period last year, an increase of 30.18 points over the lowest level in December last year. But since May, the price of steel has declined.

The national development and Reform Commission official pointed out that the main reason for this round of steel price increases can be divided into two aspects, on the demand side, is a medium-sized city commercial housing sales volume, steel demand is expected to bring two; to many construction projects during the winter break, bring the steel demand growth; three traders restocking in the short term, expanding demand for steel; four is expected to make up the short board, steady growth policies will drive the demand for steel; on the supply side, one is the last part of the steel enterprises for production, crude steel production decline, reduce the market supply; two is expected to market production capacity will reduce the supply of steel; the three is part of the production of steel for major activities, take measures to limit production, is expected to reduce the short-term supply of steel. In addition, the artificial speculation in the spot and futures market is also one of the important reasons for the excessive rise in the price of steel.

According to the introduction, the relevant areas at present have worked out a plan to resolve the excess capacity of iron and steel, and reported to the State Council for the record. Next, the national development and Reform Commission (NDRC) will work with relevant parties to supervise and guide the smooth and orderly efforts of the relevant areas to promote the resolution of overcapacity in iron and steel.