Developing Steel Construction can Resolve the Overcapacity

On Januaray 8th and 9th, The Committee of Steel Structure Experts in China has hold the annual meeting in Wuhan, Hubei Province. More than 200 steel structure experts get together and discussion the current steel industry in China. They proposed to develop steel construction so as to defuse the current serious excess steel production capacity. The characteristic ofsteel construction is light, fast ,better and cheaper to use, the experts believes that structural steel is the most suitable for building industrial steel building construction.

During the meeting, the multi-site large-span grid structure is strongely suggested. Also, in order to facilitate the production of prefabrication, a six tetrahedral units of reticulated spherical shell is brough up. According to the latest reportes, eighty percent of steel building components can be processed in the factory, at the same time it is easy to dismantled. Moreover, some products and materials can be reused and recycled. Compared to the traditional concrete construction, steel construction can reduce 40% of weight, increase four times of construction efficiency, shortened 1/3 construction period, reduce 35% of carbon emissions, and also increase 5% of room rate. Therefore, steel structure is more popular in the developed countries.
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Statistics showed that in the last five years, the amount of steel construction in China is 30 to 50 million tons which is accounting for 5% of steel production totally in Chinese Steel Industry. However, compared with other developed countries, it is very obvious that in China the steel construction application is still in a very low level. The steel construction proportion is over 45% in United State, 28% in Japan, 22% in Germany. Academicians in this meeting believe that developing steel construction can resolve the overcapacity in the Chinese Steel Industry, also it cvan promote the construction of industrialization, to achieve the transformation and upgrading of traditional industries.

Using the Market to Solve the Overcapacity in the Steel Industry

In Januaray, the senior leaders, Li Keqiang has stressed that, under the current overcapacity prescriptions in China, the government will forced to give full play role to the market mechanism. The government will takeing advantage of the market oriented approach to resolve the overcapacity in the Chinese Steel Industry. Specifically, Li Keqiang clearly summarized into three tasks. Including strict control of incremental, proactive reduction, inventory optimization. Besides, Li Keqiang also proposed to highlight production process to solve the "money", "debt", "people" these three key issues. The news reporters has learned that the National Development and Reform Commission, the Ministry and other major ministries have excess capacity on a number of issues to resolve research and deployment policies are expected to be introduced soon.

Li pointed out that the current overcapacity in the two most prominent industry, one steel, one coal. Surplus in these industries has not the industry cycle issues. In the new situation, the government should take " hard measures" to resove the overcapacity. In order to strictly control the incremental, Li Keqiang has stressed that first of all new production has to stopped. Especially, it will not be acceptable to exapnd production capacity under the name of technological innovation.

Finally, Li Keqiang also stressed the need to optimize inventory production capacity, companies want to resolve the overcapacity in the process of the "quantity" cut down, the "quality" to go up, and promote product upgrading, speed up to high-end, smart, green aspects of the transition converting.info@primesteeltube.com