The reform of the cement industry to resolve the three major contradictions    

The general office of the State Council recently issued the "guidance on the promotion of building materials industry to adjust the structure of steady growth and increase the efficiency of" (issued <2016>34, hereinafter referred to as the "opinions"), the key problem of the cement industry has put forward concrete measures, such as: non filing and expand the production capacity of the new cement clinker production capacity replacement project, stop project implementation, different forms of production, set up peak adjustment of industrial structure of special funds. What is the impact of the opinion on the cement industry? How to advance it? For all the questions you concern, Kong Xiangzhong, executive vice president and Secretary General of China Cement Association, has made a deep interpretation.

The State Council on the "guidance" to promote the building materials industry to adjust the structure of steady growth and increase the efficiency of the building materials industry, especially major policy documents in the cement industry long-awaited, which relates to the "13th Five-Year" event during the development of building materials industry. "Opinions" to replace the basic every five year plan industry development planning in the past, the next period to resolve overcapacity, accelerate cement building materials industry transformation and upgrading, promote enterprises to reduce overall requirements, the efficiency of the main tasks, policies and measures, and strengthen the organization and leadership, grasp the implementation of the tasks to make specific arrangements.

Market concentration increased to 60% in 2020

In order to realize the healthy development of the cement industry transformation and upgrading, the key is to seize the excess capacity, structural adjustment, disorderly competition and other three outstanding contradictions in the industry, the supply side structural reform, by stopping the new cement project, guide the inferior enterprises from the market concentration, in order to improve, and strengthen self-discipline, enhance the innovative consciousness and innovative ability. Expand the variety and improve the quality, attention and investment in overseas market.

The "opinions" mentioned in the target task, "by 2020, a number of Yajian cement, flat glass production capacity, the capacity utilization rate to a reasonable interval; cement, flat glass production in the top 10 enterprises of the production concentration is about 60%". For the cement industry, the completion of the target task is not a problem. The production capacity of cement clinker in the top 10 groups in 2015 accounted for 54% of the country's total, and the top 50 accounted for 75%. By 2020, with the implementation of the construction of new capacity, and backward production capacity out of the merger and reorganization of enterprises, more than 60% of the market concentration can be achieved.

The "utilization rate of productivity back to a reasonable interval", as mentioned in the opinion, is a relative dynamic indicator. From an economic point of view, it means that the effective utilization of capacity should be above 80%. From a market perspective, it should be that the sale of products in most enterprises is reasonable and larger than that in the same period, and the price of cement will remain stable for a long time. For our country, there will be a difference in the price and the profit level of the cement in the markets of the north and South East and west regions.

There is no new cement project from now on by the end of 2020

How to understand the "cement clinker project" which was put forward by the opinion before the end of 2020, and is strictly prohibited to record and expand the production capacity. Before the end of 2017, the cement clinker capacity replacement between the actual controllers and different enterprises will be suspended.

The cement project has implemented the filing system, and can not get the approval from the Ministry of industry and the national development and Reform Commission's record notice, but also can't get the production license. No production license is illegal production. It should be banned. Any new cement project will expand capacity, and it is fundamental to stop the "capacity replacement" policy. The "opinions" mentioned in the "suspension of cement clinker production capacity replacement" actual control of different enterprises, its meaning is refers to the enterprise internal capacity replacement is allowed, for example: elimination of enterprise's own small scale production line, and then a equivalent replacement of large-scale production line, but can not be used outside the enterprise's production capacity replacement index index. But in the actual operation, the enterprise can buy other enterprises first and buy the replacement index in disguise, so that the capacity replacement policy does not achieve the goal of reducing the capacity. Cement clinker capacity replacement project is an investment behavior. Whether the approval process of investment project is legitimate or compliance is the key. It should not be related to the actual controller of project investment. It's difficult for people to understand that the "opinion" put forward the suspension of capacity replacement before the end of 2017, then the capacity replacement is possible after 2017, which is inconsistent with the prohibit of the record before the end of 2020. This sentence should be interpreted as follows: from now until the end of 2020, local governments must not approve new cement projects for any reason, and seriously punish illegal construction projects.

How to understand the "collaborative disposal of city domestic garbage or hazardous waste, solid waste carbide slag cement projects associated with the use of cement kiln, must rely on the existing new dry cement clinker production line to increase capacity of reform?

In this sentence, we should re punctuation, namely "collaborative disposal of city domestic garbage or hazardous waste, solid waste carbide slag cement projects associated with the use of cement kiln, must rely on the existing new dry cement clinker production line, improvement of the existing production line to expand production capacity." Because cement kiln disposal of domestic waste and hazardous waste will not increase production capacity, and using existing carbide slag to produce cement production line will not only increase the utilization of carbide slag, but also require no expansion of new capacity after transformation. Therefore, the new disposal of carbide slag and the disposal of carbide slag in newly built PVC project should rely on the existing new dry process cement clinker production line around the enterprise, which is beneficial for the existing cement clinker production enterprises to reduce the consumption of limestone resources.

Setting up a special fund award to take the initiative to withdraw the capacity

The opinions put forward that we should explore the principle of "industrial structure adjustment" jointly set up by large backbone cement enterprises according to the principle of "who benefits and who pays".

This is a good way for innovation and market to accelerate the exit of the backward production capacity. In the northeastern survey report of the CPPCC National Committee in March this year, it is a very important issue to "establish a special fund for withdrawal of production capacity by market." The ways and means for the establishment of special funds are described in the article "market environment for ensuring fair competition for cement enterprises" published in May 4th this year. In general, referring to the practice of "differential tariff", the production price of enterprises is added, and the standard of additional electricity price is set up by municipalities and autonomous regions according to the total amount of elimination and the progress of elimination, which is used to withdraw the compensation of enterprises. In the future, the remaining enterprises will provide the necessary compensation for the withdrawal of the enterprises. In addition, the government mentioned in the notice will deal with environmental protection, energy efficiency, quality and license according to the law, which is expected to accelerate the exit of backward production capacity.

In addition to the "notice" fully affirmed the production activities during the heating period of cement kiln north peak, also requires other areas implement different forms of staggering production. Staggering production is proposed in the enterprise market practice, the 2014 "NPC and CPPCC" on behalf of the support, as Congress is concerned by the society. This is an innovative approach that will improve the quality of the environment and dissolve the overcapacity and change the traditional management model of the enterprise. The northern region has been carried out for two consecutive years winter staggering cement production effect, reflect the social good. In 2015, the Ministry of industry and the environmental protection department have jointly issued a notice, requires all enterprises to carry out the peak production of cement. The peak production of "notice" approved by the State Council, is a great encouragement for the cement industry.

"Opinions" promote confidence and promote various work

The opinion has boosted the confidence to promote the healthy development of the cement industry. Many of these measures have been called and advocated by the cement association, which is an affirmation of the work of the association.

Chinese cement association is committed to sustainable development of the industry, will be reported to the relevant government departments in each of a number of policy recommendations, the policy recommendations of most of the content comes from the enterprise, from the market, the government departments to reflect the demands of the enterprise, is the responsibility of the society to reflect market dynamics. Some policy suggestions are China Building Materials Federation and Chinese Cement Association to the government sector, the next step, the association will as soon as possible in the industry to implement the "opinions" spirit, further refinement of the policy, which has maneuverability, and will continue to the government department to submit new policy recommendations.

The opinion emphasizes that all regions and departments should further improve their understanding. With a high sense of responsibility, a sense of mission and the spirit of innovation and innovation, we will work together to promote the steady growth of the building materials industry, the structure of adjustment, the transformation and upgrading, and the work to reduce the efficiency and increase the efficiency of the building materials. The people's government at the provincial level should make concrete plans in accordance with the local reality and conscientiously do a good job in organizing and implementing. The Ministry of industry and information, the NDRC and the relevant departments should strengthen the supervision and guidance to the local authorities. The relevant departments should improve the supporting policies according to their duties and work together to promote the implementation of the tasks.

Chinese Cement Association will be in accordance with the "opinions" about "to play the role of associations" content, strengthen self-discipline, promote the construction of the regional market and coordination, maintain fair market competition environment, and various provinces and autonomous regions (cement building materials Association) teamed up to work with all levels of government, formulate and improve the supporting policies. In order to carry out the spirit of the opinions, China Cement Association plans to hold an industry conference in July, organize the leaders and member units to learn the contents of the opinions, and summarize and promote the advanced experience.

By 2020, a number of Yajian cement, flat glass production capacity, the capacity utilization rate of return to a reasonable range; cement, flat glass production in the top 10 enterprises of the production concentration reached about 60%.