2017 Has a Long Way to Reduce Capacity

2017 Has a Long Way to Reduce Capacity

The state council information office will held a press conference reference of leading  the economic development of the new normal and deepening the reform of the supply side ,  director of the national development and reform commission, said in 2017 the requirements  of reducing the production capacity will be higher, the pressure will be greater. As a  LSAW steel pipe, DSAW steel pipe, 3 PE anticorrosive coating pipe and other products  production services vendors, Shinestar group has been very attention to reducing  capacity. Shinestar steel research institute believes that have a long way to go to the  process of reducing production capacity, have pressure to just have power.

In 2016, during the process of reducing production capacity ,we encounter many new  problems and new situations, such as the contradiction between supply and demand, price  fluctuations,etc. Price is an important indicator of the baton role is very important for  the supply and demand.

At the beginning of 2016 ,steel price index is only about 60, in the second half of  2016,the price index rose to 100, the price also have a substantial rise. Line, rebar,  cold rolled sheet, plate steel, at the beginning of the year the price also is little  more than 2200 yuan per ton, 3800 yuan by the?end of the year. At the beginning of bohai  sea power coal prices index, 370 yuan per ton, in the second half once topped 680 yuan,  fluctuates up and down at the end of this year or in 600 yuan per ton.

Shinestar steel institute think about it, one is the inventory of the cover, because the  economic operation is smooth, enterprises need to cover the inventory; Second, active  reduce production, steel and coal enterprise according to the demand of production  capacity to compress the output; Third is the ultra falls, is the economic slowdown when  price down; Forth is policy expectations, everyone think efforts in increasing capacity,  may reduce the supply, prices are likely to pick up. But overall, the supply and demand  fundamentals have no fundamental change, price fluctuation is a comprehensive result of  short-term factors, it also can meet the demand of economic stability good, increasing  trend.

There are some more complex factors affecting price fluctuation, such as electricity,  road, rail capacity, etc. For this kind of situation, the national development and reform  commission together with relevant departments, trade associations, etc adopted measures:  the first is the orderly release efficient advanced capacity, increase production. The  second is to guide coal with coal enterprises signed a long-term agreement or contract,  change its way to trade, it also play a positive role. The third is the specification of  coal price index of compiling and publishing. The fourth is a specification of coal  distribution activity, strengthen the security of railway transportation.

Relevant departments are making 2017 plan of steel coal reducing production capacity,  sciencely making mission objectives. To further strengthen the safety standards and  backward production capacity standards, "zombie" companies must as a "key", speed up from  the closure.

China's steel industry should have deep understanding to the importance of capacity,  change thinking methods, deepen the reform of the supply side. As steel whole service in  the field of enterprise, Shinestar group will do a good job in the lead, to speed up the  transformation and upgrading, strive to produce high quality LSAW steel pipe, 3 PE  anticorrosive coating steel pipe, large diameter DSAW steel pipe, and API line pipe factory, for  the healthy and stable development of iron and steel industry efforts.

Talking about the downward pressure on China's real economy

At present, China's industrial production is still in the downstream industry chain, downward pressure still exist, most of the manufacturing enterprises still follow the  "small profits and good sales" mode of production and sales, products added value is not high.Shinestar Steel Research Institute believes that this led directly to the  profit level of industrial enterprises also encounter bottlenecks, such products in China's labor costs and tax costs rise in the background, but also gradually lost the  price advantage, the lack of sustainable development momentum.

The current executive meeting of the State Council once again stressed the need to promote the upgrading of the real economy, it is necessary to speed up the smooth  movement of the old and new energy, collaborative efforts to promote the real economy covering the Agriculture, industry and service industry to flourish.In recent years,  shinestar group has been actively respond to a nation's call for upgrading the real economy, produce a lot of high quality products, such as straight seam steel pipe,  galvanized pipe, api 5l steel pipe, welded pipe, seamless steel tube, etc.

Someone said, "made in China always suffer from two disease."One is the control of the machine and control system can not pass, one is the power system of domestic  equipment does not pass, innovation ability is weak.At the same time, in the case of rising factor costs, China's manufacturing productivity is low, can not be resolved  by technological progress to increase the high cost.

2016, China's overall economic growth rate slowed down, the three major trends in the demand for investment slowed down, consumption is stable, the downward trend  of exports, endogenous growth momentum is gradually formed, the industry is facing the bottleneck of the development of structural adjustment.Is expected in 2017  with the shrinking of effective demand, economic downward pressure still exists, resulting in the macro economy may produce the economic downturn and the inflation  rate upward pressure on the coexistence of "stagflation" risk.

In addition, the high cost of industrial production and industrial products will continue to restrict the development of the industrial economy.According to the data  analysis, in 2016 by the overseas and domestic resources, energy, iron and steel, nonferrous metals and other commodities prices, hand driven PPI stabilized, on the  other hand the possibility of future production factor prices generally rise increase, forming pressure on the cost of industrial chain, resulting in weakening demand,  which restricted the sustainable development in the field of industrial economy.

Since 2012, the labor cost advantage of China as the "world factory" is decreasing year by year.In particular, the level of labor wages, with the level of developed  countries gradually.2016 local companies flight situation caused's emphasis on tax of the enterprise in question, at the same time around the camp to increase further,  the phase of enterprise tax burden is not reduced the problem such as increasing will exist.The future industrial structure adjustment will affect the whole industry  development situation, corporate profits will be in the low post, tax burden of corporate profits stripping will hit production enthusiasm.However, problems have to find  solutions, shinestar group will continue to focus on the development of China industrial economy, combined with their own actual situation to accelerate the  transformation and upgrading.Produce a better straight seam steel pipe, galvanized pipe, api 5l steel pipe, welded pipe, API line pipe factory, injected new  impetus to the development of Chinese economy and vitality.

China's economy to promote the world economic integration

"In the economic globalization today, there is no isolated island." Shinestar of iron and steel research institute believes that in line with the economic law of economic globalization, conforms to the interests of all parties, is the trend of The Times. And economic globalization is a double-edged sword, both for the global development provide strong momentum, also brought some new challenges, new situation need to seriously face.

Facing reverse the tide of globalization, rising protectionism, Jinping Xi in apec leaders meeting in Lima, chairman of a strong response, there is no way out "protectionism", "we can't because at that time the difficult to stop, to participate in the process of economic globalization, pay attention to with their respective development practice, pay attention to solve the problem of justice, leading the economic globalization to develop in the direction of a more inclusive pratt &whitney"...

In the G20 summit in hangzhou, China actively pushing for the “G20 global trade growth strategy”, in order to reduce trade costs and promote trade and investment policy coordination, promote trade in services, to strengthen trade financing and other major trade and investment development goals provides a stable mechanism of protection, in order to promote global trade and pointed out the direction for sustainable economic development. Shinestar group as carbon steel pipe, galvanized pipe, welded steel pipe, line pipe, submerged arc weld spiral welded pipe, scaffolding, and other products production services vendors, also has been paying attention to the development of global economy, and try to realize their transformation and upgrading, contributing to the development of Chinese economy and the global economy out of a force.

Shanghai for 3 years, free trade area construction in building with the international prevailing rules of corresponding open investment and trade system, deepen the financial innovation and establish a new system of the open economy, has made important achievements, stimulated the market innovation vitality. Test new registered enterprises in 4 m, more than the sum total of more than 20 years before listing, a series of important achievements copy to promote in the country.

China actively promotes the economic integration, and constantly promote the development of the brics countries, China - asean, initiative to promote the asia-pacific free trade zone, promote regional economic and comprehensive partnership agreement. Is to fully promote the trade between China, Japan and South Korea, for example, the three parties agreed that helps to give full play to the industrial complementarity among the three countries establishing a free trade zone, to further promote regional value chain integration, is conducive to the prosperity and development of the region.

In recent years, China has always insisted on promoting international trade and investment liberalization and facilitation, insist on multilateral and bilateral two open "wheel" together. In addition, we also need to be more positive in the face of market environment and the economic situation at home and abroad, to build an open world economy. Shinestar group will also strive to improve enterprise's own development, strive to produce more high quality carbon steel pipe, galvanized pipe, welded steel pipe, line pipe, submerged arc weld spiral welded pipe, scaffolding, and API line pipe factory, involved in the process of economic globalization.

Talking about the downward pressure on China's real economy

At present, China's industrial production is still in the downstream industry chain, downward pressure still exist, most of the manufacturing enterprises still follow the  "small profits and good sales" mode of production and sales, products added value is not high.Shinestar Steel Research Institute believes that this led directly to the  profit level of industrial enterprises also encounter bottlenecks, such products in China's labor costs and tax costs rise in the background, but also gradually lost the  price advantage, the lack of sustainable development momentum.

The current executive meeting of the State Council once again stressed the need to promote the upgrading of the real economy, it is necessary to speed up the smooth  movement of the old and new energy, collaborative efforts to promote the real economy covering the Agriculture, industry and service industry to flourish.In recent years,  shinestar group has been actively respond to a nation's call for upgrading the real economy, produce a lot of high quality products, such as straight seam steel pipe,  galvanized pipe, api 5l steel pipe, welded pipe, seamless steel tube, etc.

Someone said, "made in China always suffer from two disease."One is the control of the machine and control system can not pass, one is the power system of domestic  equipment does not pass, innovation ability is weak.At the same time, in the case of rising factor costs, China's manufacturing productivity is low, can not be resolved  by technological progress to increase the high cost.

2016, China's overall economic growth rate slowed down, the three major trends in the demand for investment slowed down, consumption is stable, the downward trend  of exports, endogenous growth momentum is gradually formed, the industry is facing the bottleneck of the development of structural adjustment.Is expected in 2017  with the shrinking of effective demand, economic downward pressure still exists, resulting in the macro economy may produce the economic downturn and the inflation  rate upward pressure on the coexistence of "stagflation" risk.

In addition, the high cost of industrial production and industrial products will continue to restrict the development of the industrial economy.According to the data  analysis, in 2016 by the overseas and domestic resources, energy, iron and steel, nonferrous metals and other commodities prices, hand driven PPI stabilized, on the  other hand the possibility of future production factor prices generally rise increase, forming pressure on the cost of industrial chain, resulting in weakening demand,  which restricted the sustainable development in the field of industrial economy.

Since 2012, the labor cost advantage of China as the "world factory" is decreasing year by year.In particular, the level of labor wages, with the level of developed  countries gradually.2016 local companies flight situation caused's emphasis on tax of the enterprise in question, at the same time around the camp to increase further,  the phase of enterprise tax burden is not reduced the problem such as increasing will exist.The future industrial structure adjustment will affect the whole industry  development situation, corporate profits will be in the low post, tax burden of corporate profits stripping will hit production enthusiasm.However, problems have to find  solutions, shinestar group will continue to focus on the development of China industrial economy, combined with their own actual situation to accelerate the  transformation and upgrading.Produce a better straight seam steel pipe, galvanized pipe, api 5l steel pipe, welded pipe, API line pipe factory, injected new  impetus to the development of Chinese economy and vitality.