Overcapacity in steel industry is plagued by hardware

The National Development and Reform Commission held a conference to curb industry excess production capacity and duplicated construction. The overcapacity in the steel industry ranks first in all major industries. Overcapacity in the steel industry has become an indisputable fact.

According to the China Iron and Steel Association, the steel industry has entered the entire industry with losses, and the rate of production cuts is significant. It is estimated that the annual crude steel production will be 500 million tons, which is basically the same, and may even decrease. In addition to being affected by the global economy, the Chinese steel industry depends critically on the development of its downstream industrial chain. At present, it is mixed.

Oversupply of steel oversupply Once again, the early warning of hardware overwhelmed with overcapacity. Indisputable facts Hardware industry coincides with crisis Crisis overcapacity Wind turbine bearings are removed from the discounted import catalogue. Steel's colored and backward production capacity will become a necessity. “Hard bones” Development and Reform Commission will hold a press conference to introduce overcapacity in steel and other industries. In the major downstream industrial chain industry of iron and steel, the consumption of the building materials industry is currently basically stable, but due to the slump in construction investment, the output growth rate of hardware and other products has reached a new low. Due to the poor digestion of the downstream industrial chain industries such as the downstream hardware, the steel production capacity has continued to increase. The supply and demand in the Chinese steel market has undergone a fundamental change, and excess pressure in the industry has begun to show.

Overcapacity has inhibited the sustainable development of China's economy, resulting in the waste of economic resources, the accumulation of bad news and the intensification of environmental problems.

The overcapacity of the steel industry will have a lot of negative impact on the downstream hardware industry. Hardware companies will be forced to drastically reduce costs in order to maintain profitability, which will lead to “substantial reduction in enforcement of national regulations” and “ignorance of environmental protection, health, and safety standards. A series of problems such as earning profits at the expense of the environment and avoiding labor and social security regulations by lowering pay. In addition, excess production capacity in the steel industry has led to a reduction in the profits of hardware companies and the lack of funds for research and development, which has hindered China's industry innovation.