Major Events of the Steel Industry in November

一、 Major events of the steel industry in November 2019

Domestic articles

Macro economy:

Development and Reform Commission issues “Administrative Measures for Special Subsidy Funds for Prophase Work of Northeast Revitalization Major Projects and Interprovincial Cooperation Projects”

On November 5th, in order to further standardize and improve the management of special subsidy funds for the preliminary work of major projects in revitalizing Northeast China and inter-provincial and regional cooperation projects, improve the efficiency of investment use within the central budget, and promote the institutionalization, standardization, and scientificization of investment management within the central budget. The “Administrative Measures for Special Subsidy Funds for the Preliminary Work of Northeast Major Revitalization Projects and Inter-provincial Cooperation Projects” was issued. The major projects in the Northeast Revitalization and inter-provincial cooperation projects referred to in the Measures refer to major projects in the areas of infrastructure, industrial development, social and people’s livelihood, and ecological environment, which have a major impact on the revitalization of Northeast China and the development of the province.

The Ministry of Transport and other issues issued “Guiding Opinions on Building a World-Class Port”

On November 13, the Ministry of Transport, the United Nations Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Emergency Response, the General Administration of Customs, the General Administration of Market Supervision, and the National Railway Group jointly issued the “Guidelines for Building World-Class Ports” opinion”. It is clear that by 2025, important progress has been made in the construction of world-class ports, major breakthroughs have been made in the green, intelligent, and safe development of major ports, and the level of specialization and scale of regionally important ports and general ports has significantly increased. By 2035, the level of national port development will rise as a whole, and major ports will generally reach world-class levels. Several hub ports will be built into world-class ports, leading the green and intelligent development of global ports. By 2050, a world-class port will be fully built, and a number of world-class port groups will be formed, with the development level ranking among the top in the world. Focusing on key areas and weak links, speeding up the repair of shortcomings, rectifying outstanding problems, focusing on improving the quality of development, 19 key tasks in six areas were proposed.

15 departments including the Development and Reform Commission formally released the “Implementation Opinions on Promoting the Deep Integration Development of Advanced Manufacturing and Modern Service Industries”

On November 15, in order to promote the deep integration and development of advanced manufacturing and modern service industries, the NDRC and other 15 departments jointly issued the “On Promoting the Deep Integration of Advanced Manufacturing and Modern Service Industry” Development Opinions. By 2025, a group of deeply integrated development enterprises, platforms, and demonstration zones with active innovation, significant benefits, outstanding quality, and outstanding driving effects will be formed. The company’s productive service investment will gradually increase, the industrial ecology will continue to improve, and the integration of the two industries will promote the manufacturing industry. An important support for high-quality development.

The Overall Plan for the Demonstration Zone of Ecological Green Integrated Development in the Yangtze River Delta Issuing and Building an Interconnected Infrastructure System

On November 19, the “Overall Plan for the Demonstration Zone of Ecological Green Integrated Development in the Yangtze River Delta” has been approved by the State Council and is now being issued. The development goals proposed in the “Overall Plan” are: by 2025, a number of major projects such as ecological environment protection, infrastructure, scientific and technological innovation, and public services will be completed and put into operation. The display of harmonious living between humans and nature has been significantly improved. The main functional framework of the integrated demonstration zone has basically been formed, and the ecological quality has been significantly improved. The integrated system innovation has formed a batch of replicable and popularizable experience. Major reforms have been made to integrate the system and release dividends. The role of leading the development of higher quality integration in the Yangtze River Delta has begun to play. By 2035, a more mature and effective green integrated development system will be formed, and comprehensive construction will become a benchmark for demonstration and leading the higher-quality integrated development of the Yangtze River Delta.

Li Keqiang chaired a special conference on research and deployment of the 14th Five-Year Plan

On November 25, Li Keqiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, hosted a special conference on the preparation and formulation of the fourteenth five-year plan for national economic and social development. Li Keqiang pointed out that during the “Fourteenth Five-Year Plan” period, the external environment may be more complicated, with more uncertainties and challenges. China is now in a critical period of changing the development mode, optimizing the economic structure, and changing the driving force for growth, and the people have more of a better life. look forward to. We must conscientiously plan important support for economic and social development during the 14th Five-Year Plan period. Focusing on promoting economic development, enhancing people’s well-being, and preventing and mitigating risks, a number of major policies have been studied and introduced. Focusing on enhancing the endogenous power of development and stimulating market vitality, we have launched a series of major reform and opening-up measures. In particular, in accordance with the requirements of clarifying the relationship between the government and the market, the government and society, we must deepen the reform of “decentralization and management services” and create a market-oriented legalized international Greater progress has been made in the business environment. Focusing on complementing shortcomings, promoting upgrades, increasing strength, and benefiting people’s livelihoods, research and launch a number of major projects and projects, pay more attention to the role of social forces, focus on improving the level of infrastructure, enhance industrial innovation and competitiveness, and promote the improvement of the ecological environment. Improve people’s living standards.

National Development and Reform Commission: Strengthening infrastructure construction in key development and open pilot areas along the border

On November 26, the National Development and Reform Commission held a construction site meeting of the key development and opening up experimental zone along the border in Pingxiang, Guangxi Zhuang Autonomous Region. The meeting emphasized that the construction of key development and opening up experimental areas along the border should play a greater role in advancing the “Belt and Road” construction and the overall situation of reform and development in the country. It is necessary to focus on the key points, pay close attention to implementation, strengthen infrastructure construction, strive to build an international comprehensive transportation channel oriented to Southeast Asia, South Asia, Central Asia, Northeast Asia and other directions; and vigorously develop industries with distinctive advantages and promote the transformation and upgrading of industrial systems in border regions.

State Council issues and issues Notice on Strengthening Capital Management of Fixed Asset Investment Projects

On November 27, the State Council issued the “Notice on Strengthening Capital Management of Fixed Asset Investment Projects”. The “Notice” points out that the implementation of a capital system for fixed asset investment projects and the reasonable determination and timely adjustment of capital ratios are important policy tools to promote effective investment and prevent risks, and an important means to deepen reform of the investment and financing system and optimize the investment supply structure. . In accordance with the requirements of the Party Central Committee and the State Council on doing a good job in the “six stability” and deepening the reform of the investment and financing system, the role of the capital system of investment projects should be better brought into play to ensure that there is control, differentiation, and effective integration of effective investment and risk prevention And coordinated advancement. The “Notice” proposes four aspects of policy measures on strengthening the management of capital for investment projects.

The first is to further improve the capital system for investment projects. The application scope and nature of the capital system for investment projects shall be clarified, capital accounting management of investment projects shall be implemented by classification, and the capital ratio shall be standardized in accordance with the nature of investment projects. The second is to properly adjust the infrastructure project * low capital ratio. For port, coastal and inland navigation projects, the project * low capital ratio was adjusted from 25% to 20%. The proportion of airport projects * with low capital remains unchanged at 25%, and other infrastructure projects remain unchanged at 20%. Among them, infrastructure projects in the fields of highways (including government toll roads), railways, urban construction, logistics, ecological protection, and social livelihood can be appropriately reduced under the premise of clear investment return mechanisms, reliable returns, and controllable risks. Project * Low capital ratio, but the reduction must not exceed 5 percentage points. The third is to encourage the financing of major investment projects in accordance with laws and regulations. For the infrastructure sector and industries encouraged by the state, project legal persons and project investors are encouraged to raise equity capital of up to 50% of the project by issuing equity and equity financial instruments. Local governments at all levels and their related departments can use all types of financial funds such as budget funds at this level and higher-level subsidy funds to raise project capital, and special government bonds can be used as eligible major project capital in accordance with relevant regulations. Fourth, strictly regulate management and strengthen risk prevention. Project borrowing funds and funds that do not comply with state regulations for shareholder borrowings and “famous stock debt” shall not be used as capital for investment projects. Raising the capital of investment projects shall not increase the hidden debts of local governments in violation of regulations, and shall not violate the relevant requirements of the state on the asset-liability ratio of state-owned enterprises. Don’t owe the project money. When a financial institution determines the capital of an investment project, it should strictly distinguish between the investment project and the project investor, and conduct a comprehensive review of the authenticity, compliance, investment income, and loan risk of the capital.

The Ministry of Finance has set a limit of 1 trillion yuan for some new special debts in 2020

On November 27, in order to implement the decision-making and deployment of the Party Central Committee and the State Council, accelerate the issuance and use of special bonds issued by local governments, and promote effective investment support to supplement shortfalls and expand domestic demand, according to the deliberations and decisions of the 7th Session of the 13th NPC Standing Committee With the consent of the State Council, the Ministry of Finance recently issued a quota of 1 trillion yuan for some new special debts in 2020, accounting for 47% of the 2.15 trillion yuan of new special debt for the year of 2019, which is controlled within the scope authorized by law. At the same time, all localities are required to implement the special bond quotas as soon as possible to specific projects, and do a good job in the issue and use of special bonds. Early issuance and early use ensure that it can be used early next year to see results, and ensure that physical workload is formed as soon as possible. Pull.

Supply-side reform:

Shougang Group signs strategic cooperation agreement with China Baowu

On November 6, at the Shanghai headquarters of China Baowu Group, Shougang Group Co., Ltd. and China Baowu Iron and Steel Group Co., Ltd. signed a strategic cooperation agreement. This strategic cooperation indicates that under the background of deepening supply-side structural reforms, the two major steel groups will jointly promote the high-quality development of the steel industry through strong alliances. The two sides will build on the strategic orientation of accelerating the transformation and upgrading of state-owned enterprises and accelerating innovation-driven development.They will carry out in-depth cooperation in the fields of industrial finance, steel and related services, intelligent manufacturing, green manufacturing, new material research and development, and urban services, and jointly promote higher Levels and broader areas complement each other and develop together.

In the field of industrial finance, the two sides, while adhering to their respective development orientations, actively promote cooperation in the field of industrial finance, and enhance strategic cooperation relations through cross-shareholding, joint investment and other forms of capital cooperation. In terms of steel and related service industries, focusing on the direction and path of steel enterprise transformation and upgrading in the new economic environment, strengthening cooperation in the steel industry chain, the two sides strengthen technical cooperation, jointly carry out new product research and development, explore cutting-edge product cooperative development mechanisms, and jointly tackle technical problems To create a high-quality steel ecosystem. In terms of state-owned enterprise reform and operation and management, the two sides have strengthened exchanges and cooperation in the reform of mixed ownership of enterprises, reform of institutional mechanisms, construction of state-owned capital investment companies, and enterprise production, technology, marketing, management, and personnel training.

Shougang Group intends to transfer the company’s 15% equity to Baowu Iron and Steel Group for free

On November 8, Shougang announced that Beijing Shougang Co., Ltd. had received a notice from the company’s controlling shareholder, Shougang Group Co., Ltd., that Shougang Group and China Baowu Iron & Steel Group Co., Ltd. had signed the “About Beijing Shougang Co., Ltd. According to the agreement of the company, the Shougang Group intends to transfer the 793,408,440 shares (accounting for 15% of the company’s total share capital) held by the company without restriction for sale to Baowu Group for free. Prior to the free transfer of shares, the company’s total share capital was 5,289,389,600 shares, of which Shougang Group held 4,198,760,871 shares, accounting for 79.38% of the total share capital, and was the company’s controlling shareholder. After the completion of the free transfer of shares, the total share capital of the company remains unchanged. Shougang Group holds 3,405,352,431 shares, accounting for 64.38% of the total share capital; Baowu Group holds 793,408,440 shares, accounting for 15% of the total share capital.

Dedicated Group reaches agreement to acquire British Steel pledges capital injection of £ 1.2 billion

On November 11, China Dedication Group said that it had reached an interim agreement to acquire British Steel and promised to invest 1.2 billion pounds (about 1.5 billion US dollars) in the next 10 years to save 5,000 jobs. The acquisition of British Steel will give Dedicated Group access to Europe’s huge infrastructure market.

Joint notice from the three departments: investigation and verification of the production capacity and output of steel companies

On November 19, in order to consolidate the results of capacity reduction in the steel industry, the National Development and Reform Commission, the Ministry of Industry and Information Technology and the National Bureau of Statistics jointly issued the “Notice on Doing a Good Job in the Investigation and Verification of the Capacity and Output of the Steel Industry”, requiring equipment for steel companies in the past three years Investigation and verification of production capacity and changes, and explain the situation. The main contents are as follows: Fill in the “Investigation Form on the Production Capacity, Output and Investment in Fixed Assets of Steel Enterprises” with the legal entity as a unit, and explain the production capacity, output and investment in fixed assets of steel enterprises. The reasons for the changes in the production capacity of steel companies since 2016, the year-on-year output growth from January to September 2019 over 10%, and the annualized capacity utilization ratio from January to September 2019 should be analyzed.

Hebei has reduced steel production capacity by more than 14.51 million tons in 2019

On November 25, the Hebei Provincial Development and Reform Commission was informed that the annual target tasks of capacity reduction in six key industries of steel, coal, flat glass, cement, coke and thermal power in Hebei province were basically completed. As of November 14, the province had reduced its steelmaking capacity by 14.0255 million tons, closed 30 mine exits and had a capacity of 10.06 million tons, reduced its cement capacity by 3.343 million tons, reduced its flat glass capacity by 6.6 million weight boxes, and reduced its coke. The production capacity is 3.198 million tons, and the thermal power production capacity is reduced by 506,000 kilowatts. By the end of this year, the province’s steelmaking capacity is expected to decrease from the peak of 320 million tons in 2011 to 213 million tons, the number of production plants with smelting capacity will be reduced from 148 to 70, and the number of companies will be reduced from 123 to 48. The cement production capacity was reduced to 206 million tons, and the target of controlling to about 200 million tons was achieved in advance.

In the next step, Hebei Province will adhere to the policy of “holding pressure, keeping pressure on small ones, and promoting big ones”, and will realize a shift from total capacity reduction to structural capacity reduction and systematic and excellent capacity reduction. To ensure that in 2020, 14 million tons of iron and steel production capacity, 6 million tons of coal, 8.4 million weight boxes of flat glass, 2 million tons of coke, and 500,000 kilowatts of thermal power will be withdrawn. By the end of 2020, the province’s steel production capacity will be controlled within 200 million tons, and the production capacity of flat glass, coal, and coke will be controlled at 200 million weight boxes, 65 million tons, and 80 million tons, respectively.

Inner Mongolia completes the “13th Five-Year Plan” coal and steel capacity reduction task two years in advance

On November 25th, at a press conference on the progress of the key tasks in the industrial energy and transportation sector of Inner Mongolia, Inner Mongolia exceeded the task of reducing the capacity of coal and steel during the “13th Five-Year Plan” two years in advance. Since last year, 2.35 million tons of steel capacity have been replaced, 2.06 million tons of electrolytic aluminum and 380,000 tons of PVC have been completed. 51 zombies in 69 districts have been cleared.

The Ministry of Industry and Information Technology’s Industrial Policy Department will organize a meeting to eliminate backward production capacity and will do five things in the next stage.

On November 25th, the Industrial Policy Department of the Ministry of Industry and Information Technology organized a work experience exchange meeting on eliminating outdated production capacity in some regions in Nanning, Guangxi. The meeting briefed on the elimination of outdated production capacity and supervision and inspection in 2019, exchanged local experiences and practices, and discussed the next steps of rectification measures and work arrangements for the problems found in the supervision and inspection. The meeting pointed out that in 2019, the implementation of the “Guiding Opinions on the Use of Comprehensive Standards to Promote the Exit of Backward Production Capacity in Accordance with Laws and Regulations” (MIIT Lianye [2017] No. 30) continued to be implemented, played a leading role, formulated annual work plans, strengthened work deployment and supervision Implement and promote the implementation of energy consumption, environmental protection, quality, safety and technology.


Post time: Dec-08-2019
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