In the past nineteen major meetings of the party, general secretary Xi Jinping's wonderful exposition on "extraordinary five years" is not only enlightening for us, but also for us to think deeply: what we have done in the past, how to do better, and what to do next.
For the iron and steel industry, capacity reduction is the top priority, and it is the only way for the structural adjustment, transformation and upgrading of the iron and steel industry to achieve good development. In recent years, combined with economic restructuring and transformation and upgrading, the work of reducing production capacity in iron and steel has been steadily advancing in accordance with the means of marketization and rule of law. Up to now, the structural reform of the steel supply side has been promoted for more than two years. China's steel industry has gradually come out of the downturn, the endogenous power has been effectively enhanced, and the reform has achieved remarkable results.
In 2016, the total pressure will be reduced by more than 65 million tons, exceeding the target task of resolving 45 million tons of crude steel production capacity in 2016. The target task of reducing about 50 million tons in 2017 is expected to exceed this target by the end of the year. Since 2016, the country has reduced crude steel production capacity of more than 0.115 billion tons. With the withdrawal of inefficient and backward production capacity of iron and steel, the utilization rate of crude steel capacity has risen sharply to more than 75%, gradually returning to a reasonable range. In 2016, the member companies of the China Iron and Steel Association achieved a profit of 30.4 billion yuan, a year-on-year profit of 108.3 billion yuan. The steel composite price index rose from 56.4 points at the beginning of the year to 99.5 points, an increase of 76.5; from January to August 2017, the China Iron and Steel Association Member steel companies achieved a profit of 91.9 billion yuan, an increase of 72.5 billion yuan year-on-year.
This year is the year of deepening steel production capacity, but also the year of tackling tough problems, but also the year of decisive victory. We want to significantly enhance our economic quality advantage. How to achieve this, adhere to the de-capacity, de-inventory, de-leverage, reduce costs, make up the board, optimize the allocation of stock resources, expand high-quality incremental supply, to achieve a dynamic balance of supply and demand will be the key. Since last year, all relevant parties have made joint efforts to strengthen work measures, and the "two hands" of marketization and legalization have jointly implemented policies and made efforts to promote the structural adjustment of steel.
Steel to production capacity is through the supply-side structural reform to the industry reborn, so that the industry, enterprises in the throes of real out of a prosperous and healthy road. With the joint efforts of all parties, steel production capacity has achieved remarkable results.
"Deeply promote supply-side reform, strengthen confidence in transformation and upgrading, and make the main steel industry more refined". "As the foundation of the national economy, steel will still play an important role in the future."