【conference report】Overcapacity was Favorable to Promote the Industrial Upgrade

  • Tuesday, July 30, 2013
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  • Keywords:Cored Wire
[Fellow]

[ferro-alloys.com] Insteel and the relevant industries, we often heard this word ‘overcapacity’. The government, some scholars and specialists also paid more attention to this problem. So the government spent much energy to made policies on the steel overcapacity.

For this problem, Mr. Zheng Yuchun, came from China Steel Development & Research Institute, expressed his own opinion in25-27th, June, 2013, The 7th Cored Wire Industry Chain Seminar and Trade Fair, hosted by ferro-alloys.com. He said that the steel overcapacity was not as serious as the people said, we should rationally think about this problem.

 He indicated that thecapacity utilization could not reach at 100%. If the number could keep about 90%, it meant that the industry development was good situation. And it was normal level at the 80%. We could not count the capacity by the simple way that the current capacity minus the capacity in the last year. On the country, we should consider the normal extent of the capacity utilization. We also should learn about that 10-20% capacity was used for the various emergencies. Meantime, it was also helpful to promote the technological progress and industrial upgrade.
 
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