The 12th Five-Year Development Plan for the steel industry, which has been brewing for a long time, is about to be released. Luo Tiejun, deputy director of the Raw Materials Department of the Ministry of Industry and Information Technology, revealed at the 13th China International Mining Conference yesterday that it is expected that the Ministry of Industry and Information Technology will officially announce the 12th Five-Year Plan for the steel industry this week. For the high-end steel prices in the Chinese steel industry in the past few years, the price of steel with low added value is lower. The “Twelfth Five-Year Plan†has a clear division of labor for which types of steel companies can develop high-end steel. At the same time, the “Twelfth Five-Year Plan†also requires that iron ore invested overseas in the past few years to form effective production capacity as soon as possible. Encouraging strong companies to develop high-end steel building materials is considered to be a low value-added steel, and the board is considered by the industry to be a higher value-added steel. However, in the past few years, especially since the financial crisis in 2008, the competitiveness of sheet metal has been significantly lower than that of building materials, which has caused tremendous pressure on sheet metal producers. Wang Xiaona, an analyst at China United Steel Network, told reporters that cold-rolled coils are highly demanding in terms of process and production technology. Whether there is a cold-rolled line has become an important basis for measuring the strength of steel companies. As of 2010, China has built more than 50 cold rolling mills and more than 150 reversing mills. The total cold rolling capacity has exceeded 100 million tons, and the newly-launched cold rolling projects are still increasing. Cold rolled coils are new. The increase in production capacity has entered the peak of release. Zhang Changfu, secretary-general of China Iron and Steel Association, told this newspaper that due to the rapid expansion of sheet production capacity in recent years, the prices of related products have fallen sharply. At the end of September, the average price of 3.0mm hot rolled coils in the country was 4,916 yuan/ton, compared with 6.5mm in the same period. The prices of the Pu Gao line and the 16mm grade three steel bars are respectively 5003 yuan / ton and 4981 yuan / ton, both higher than the hot coil. In this regard, Luo Tiejun said that during the "Twelfth Five-Year Plan" period, for most steel companies, its task is to put product upgrades in the first place, grade and stability as the top priority of product structure adjustment; For the strength of enterprises, it is necessary to develop high-end steel products, while preventing high-level homogenization development, avoiding waste of funds and disorderly competition of high-end products. Although the plan does not mention which few enterprises are specific, Baosteel, Wuhan Iron and Steel, Anshan Iron and Steel and other large domestic steel industry enterprises are considered by the industry to be in line with the above requirements. However, for small and medium-sized steel mills that are currently developing high-end steel, the 12th Five-Year Plan does not require it to stop development. In addition, the Ministry of Industry and Information Technology and the Ministry of Housing and Urban-Rural Development have established a leading group to promote high-strength steel. By 2015, the proportion of high-strength threaded steel bars of Grade III and above will exceed 80%, the annual saving of steel will be 10 million tons, and the saving of iron ore will be 16 million tons. Increase the speed of overseas investment in iron ore production as the largest raw material restricting the development of the steel industry. Iron ore plays an important part in the “12th Five-Year Plan†of steel. “In the past few years, most of the profits of the Chinese steel industry have been swallowed up by foreign iron ore companies.†Luo Tiejun said that in recent years, domestic enterprises have “going out†to explore and exploit iron ore resources with high enthusiasm, “but the projects that are really effective†Not much, many projects have not yet been put into production. Take the huge investment in Sinosteel and CITIC Pacific in the field of iron ore in Australia as an example. The projects invested by the two companies have encountered difficulties this year. Sinosteel’s Australian iron ore project has temporarily stopped development due to port problems, and CITIC Pacific’s iron ore project has seen a significant decline in competitiveness due to rising costs. Luo Tiejun said that in the next five years, foreign iron ore projects that are being invested and constructed will be promoted to be put into operation as soon as possible, and the overseas iron ore resource base will be built as soon as possible. Judging from the “Twelfth Five-Year Plan†of the iron and steel industry introduced by Luo Tiejun, the state has no big incentives for enterprises to continue to increase investment in overseas countries in the next few years. On the contrary, it encourages enterprises to increase the exploration and development of domestic mineral resources. He said that in the next few years, it will increase the exploration of domestic iron ore resources, integrate existing mine resources, ensure the orderly development of domestic mines, and prohibit indiscriminate mining.
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