Steel release capacity cannot hope to urbanization and the development of the western region

According to the ministry of commerce web site of the public, only the first two months of this year, China's iron and steel products was five anti-dumping investigation or arbitration. South America and southeast Asia and other emerging market countries also began to Chinese iron and steel products "fist". So, the road of the export of steel products is not so easy.Due to pull the steel consumption depends on investment in fixed assets, so people have Suggestions on investment, especially the urbanization and STD seamless steel pipe ASME B36.10m the development of the western region to digest the steel production capacity.

The late jingdong said it won't work, "the Japanese have lessons in this respect."

The first half of 1970 s, Japanese investment in fixed assets of more than 30% of GDP, the highest was 39%. This led to the Japanese steel companies with excess capacity. To this end, Japan took 20 years to adjust excess capacity. Later, the Japanese investment in fixed assets as a share of GDP has not more than 25%, basic within 20%.
While China's investment in fixed assets more than 45% of GDP. According to the national bureau of statistics, the domestic schedule 80 galvanized steel pipe fixed asset investment growth fell significantly, in the first half of this year was 20.1%, among them, the iron and steel industry to complete the fixed asset investment grew 4.26% year-on-year.

"If the domestic investment in fixed assets as a share of GDP increase, no longer rely on stimulating domestic consumption to solve the excess capacity, it is with great results." Late jingdong said. "in response to the R=5D 45 degree long radius eblow stimulus package in the global financial crisis has gradually exit, investment growth fell back, investment in steel consumption elasticity coefficient and to reduce the GDP. The turning point of our country has already entered the steel consumption demand slowdown."In this kind of supply and demand situation, late jingdong believe the release of steel production capacity cannot hope to urbanization and the development of the western region.

"Urbanization can drive the steel consumption, but at the same time the demand potential is released, and not wait and we haven't released." Late jingdong said, only the potential demand can smooth release, in a period of time in the future will be good for steel enterprise development. In accordance with the state information center, to achieve 70% of the urbanization, cost about 120 trillion. He said, "but don't hope to 120 trillion within five years can all smashed into it."