Following the introduction of the tightening control policies for the cement industry by the National Development and Reform Commission on the 24th, the macro-control policies for ferro-alloys emerged today. Seven ministries and commissions including the National Development and Reform Commission and the Ministry of Finance will jointly implement industry access management and differences in the ferroalloy industry. Electricity prices, adjustments to the structure of export products and other measures to solve the structural problems in the ferroalloy industry, especially the problem of serious excess production capacity.
It is understood that the ferroalloy industry in China has a serious excess capacity, with ferroalloy production of 10.67 million tons in 2005, and the utilization rate of the production capacity is only 48%, and there are still 1.61 million tons of projects under construction and 1.23 million tons of proposed projects, and the degree of industrial concentration is also relatively high. Low data shows that there are only 28 enterprises with a production capacity of more than 100,000 tons in the ferroalloy industry, with a production capacity of 4.7 million tons, accounting for only 1.8% and 21.2% of the total number of enterprises and their total production capacity; There are as many as 787 small enterprises, with a production capacity of 4.05 million tons, which account for 50.1% and 18.3% of the total number of enterprises and their total production capacity.In addition, the technological equipment is backward and the environmental pollution is serious. According to preliminary statistics, only 31% of the current ferroalloy enterprises have achieved environmental protection standards.
“As the price of products dropped, along with the increase in production costs, the efficiency dropped drastically, and some companies suffered losses or were in semi-discontinued state. The current overcapacity and structural irrational problems in the ferroalloy industry will lead to further intensification of resource and environmental constraints. The collapse of the enterprise, the increase in unemployment, and the increase in financial risks,†said the person in charge of the National Development and Reform Commission in an interview with the reporter. The responsible person disclosed that according to the current problems in the ferroalloy industry, relevant departments will be in the “Eleventh Five-Year†period. Strict industry access management, control of growth in production capacity; focus on energy saving, pollution control, and comprehensive utilization, promote advanced and applicable technologies, strengthen technological transformation, eliminate backward technology equipment, promote upgrading of process equipment; develop new products and improve product quality To meet the needs of steel, non-ferrous metals, chemicals, electronics and other industries; to play a comparative advantage, increase industrial concentration, optimize industrial organization and layout; adhere to the implementation of "going out" strategy, make full use of foreign resources and other aspects to promote the ferroalloy industry to speed up structural adjustment.
In addition, the responsible person also stated that in order to speed up the structural adjustment of the ferroalloy industry, measures will be taken specifically in four areas: First, strengthen the coordination of credit, land, environmental protection, and power supply policies and industrial policies, and strictly control investment. For ferroalloy investment projects with industrial access conditions, the investment management department shall not approve, approve, or record, the financial institution will not provide credit support, the land management department will not provide land, the power company will not provide power, and the environmental protection department will not apply for environmental protection approval procedures. Second, in accordance with the principle of promoting the upgrading of industrial structure and saving electricity, the use of electricity for ferroalloy production should be adjusted. For those below 5,000 kVA furnaces that need to be eliminated, the new equipment should be eliminated after January 1st, 2005, with a capacity of 25,000 kVA. Electric furnaces and other equipment that do not meet the entry requirements, and enterprises that do not meet industry access requirements before the end of 2006 are subject to differential electricity prices.The third is to further improve the export policy of ferroalloy products and control excessive export of ferroalloy products. Adjust the structure of export products to improve export efficiency. Guide and self-discipline in the industry, give full play to the role of industry associations.
It is understood that the ferroalloy industry in China has a serious excess capacity, with ferroalloy production of 10.67 million tons in 2005, and the utilization rate of the production capacity is only 48%, and there are still 1.61 million tons of projects under construction and 1.23 million tons of proposed projects, and the degree of industrial concentration is also relatively high. Low data shows that there are only 28 enterprises with a production capacity of more than 100,000 tons in the ferroalloy industry, with a production capacity of 4.7 million tons, accounting for only 1.8% and 21.2% of the total number of enterprises and their total production capacity; There are as many as 787 small enterprises, with a production capacity of 4.05 million tons, which account for 50.1% and 18.3% of the total number of enterprises and their total production capacity.In addition, the technological equipment is backward and the environmental pollution is serious. According to preliminary statistics, only 31% of the current ferroalloy enterprises have achieved environmental protection standards.
“As the price of products dropped, along with the increase in production costs, the efficiency dropped drastically, and some companies suffered losses or were in semi-discontinued state. The current overcapacity and structural irrational problems in the ferroalloy industry will lead to further intensification of resource and environmental constraints. The collapse of the enterprise, the increase in unemployment, and the increase in financial risks,†said the person in charge of the National Development and Reform Commission in an interview with the reporter. The responsible person disclosed that according to the current problems in the ferroalloy industry, relevant departments will be in the “Eleventh Five-Year†period. Strict industry access management, control of growth in production capacity; focus on energy saving, pollution control, and comprehensive utilization, promote advanced and applicable technologies, strengthen technological transformation, eliminate backward technology equipment, promote upgrading of process equipment; develop new products and improve product quality To meet the needs of steel, non-ferrous metals, chemicals, electronics and other industries; to play a comparative advantage, increase industrial concentration, optimize industrial organization and layout; adhere to the implementation of "going out" strategy, make full use of foreign resources and other aspects to promote the ferroalloy industry to speed up structural adjustment.
In addition, the responsible person also stated that in order to speed up the structural adjustment of the ferroalloy industry, measures will be taken specifically in four areas: First, strengthen the coordination of credit, land, environmental protection, and power supply policies and industrial policies, and strictly control investment. For ferroalloy investment projects with industrial access conditions, the investment management department shall not approve, approve, or record, the financial institution will not provide credit support, the land management department will not provide land, the power company will not provide power, and the environmental protection department will not apply for environmental protection approval procedures. Second, in accordance with the principle of promoting the upgrading of industrial structure and saving electricity, the use of electricity for ferroalloy production should be adjusted. For those below 5,000 kVA furnaces that need to be eliminated, the new equipment should be eliminated after January 1st, 2005, with a capacity of 25,000 kVA. Electric furnaces and other equipment that do not meet the entry requirements, and enterprises that do not meet industry access requirements before the end of 2006 are subject to differential electricity prices.The third is to further improve the export policy of ferroalloy products and control excessive export of ferroalloy products. Adjust the structure of export products to improve export efficiency. Guide and self-discipline in the industry, give full play to the role of industry associations.
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