To curb coke and other industries overcapacity Development and Reform Commission to strictly import the market next year

June 21, 2018

Ma Kai, director of the National Development and Reform Commission, said on December 15 that at the moment, problems such as overcapacity in the coke, steel, electrolytic aluminum, ferroalloy, calcium carbide, automobile, and copper smelting industries are prominent, and there is also potential for excess capacity in the cement, power, coal and textile industries. The National Development and Reform Commission will adopt comprehensive measures including 'strict market access, control of new projects, elimination of outdated production capacity, promotion of technological transformation, accelerated mergers and reorganizations, improvement of industry planning and industrial policies, and strengthening of departmental coordination', and strive to be implemented in the next year. Promote overcapacity industries to control the total volume, optimize the structure to take substantive steps, after years of effort to achieve significant results.
It is understood that the current steel industry production capacity has exceeded the market demand 120 million tons, there are 70 million tons of capacity under construction and the proposed capacity of 80 million tons; electrolytic aluminum industry production capacity of 10.3 million tons, idle capacity of 2.6 million tons. The ferroalloy industry has an existing production capacity of 22.13 million tons, and the operating rate of the company is only about 40%. There are also excess capacity in industries such as coke, calcium carbide and copper smelting.
Ma Kai said that due to the extensive mode of economic growth in our country and the imperfect system and mechanism, the contradiction of overcapacity has not been resolved, and some localities and enterprises are still continuing to develop new projects; in some industries, although the current production and demand are basically balanced, potential excess capacity cannot be ignored. .