Five solutions to coal overcapacity
With the increasing demand for energy conservation and environmental protection, as well as the gradual improvement of the national environmental standards for all industries, the demand for coal will continue to decline. According to the understanding of star heavy industry, now the coal industry has been a serious loss, long-term supply and demand make the coal industry is very difficult task out of trouble.
In 2015, the contradiction between supply and demand of thermal coal market further intensified. Coal production has decreased, but the initiative to eliminate backward capacity is limited, the market has always been worried about the rebound in coal prices will lead to increased production of coal enterprises. China's economic situation is worse than last year, the demand for coal will continue to decline in the future. Thermal coal futures market in 2015 as a whole to lower than the spot price of the market performance, a forward-looking reflection of the downward trend of coal prices, the cumulative decline has far exceeded last year.
In 2015, the supply-side and demand-side of our coal industry contracted in an all-round way, but the decline in demand exceeded the reduction in output, causing the contradiction between supply and demand in the coal market to continue to intensify, the winter in the coal industry, where overcapacity is a problem, is far from over.
First, we will continue to implement the State Council's guiding opinions on resolving the issue of severe overcapacity, strengthen Macroeconomic regulation and control and market supervision, and strictly prohibit the construction of new projects in industries with severe overcapacity. To play the role of the market mechanism, in accordance with the“Four a batch”, that is, “Digestion a batch, transfer a batch, integration a batch, phase out a batch” approach to speed up the elimination of overcapacity. We should innovate the system and mechanism, establish a long-term mechanism to resolve the contradiction of serious overcapacity, and promote industrial transformation and upgrading.
Second, more attention should be paid to the use of market mechanisms, economic means and the rule of law to address overcapacity, and to the strict enforcement of laws and regulations on environmental protection, energy conservation, product quality, and production safety. Strengthen the hard constraints of environmental protection, energy consumption, quality and safety. At the same time, strict enforcement of the law, in conjunction with the use of price leverage and other economic means, the market approach to promote the elimination of overcapacity.
Third, we need to step up policy efforts to guide the active withdrawal of production capacity. We should study and formulate pragmatic and effective incentives and measures to encourage enterprises with conditions to actively reduce production capacity through multiple channels.
1, according to the market situation and the needs of their own development, adjust the development strategy of enterprises, take the initiative to withdraw excess capacity.
2. Implement the reduction, merger and reorganization of cross-industry, cross-region and cross-ownership, and withdraw part of production capacity.
3, the city steel plant to implement the transformation or reduction of environmental protection relocation.
4.To “Belt and Road out” our competitive production capacity through international cooperation.
Fourth, create a good market atmosphere. We should standardize government behavior, eliminate government's improper interference and various forms of protection in the market, create a fair market environment for competition, and make all kinds of enterprises participate in market competition fairly. Strengthen the awareness of using legal means to solve the problem, in accordance with the law to solve the merger and reorganization, production capacity withdrawal of the asset and debt disposal and staff placement and other issues. To safeguard the lawful rights and interests of creditors, debtors and employees of enterprises according to law. We will improve social security policies, properly resettle workers and maintain social stability.
Fifth, with the steel, coal and other industries as the focus, and strive to resolve overcapacity through a period of efforts to make breakthroughs. At the same time, the central government will set up a special fund to reward and subsidize local governments and enterprises in their efforts to reduce overcapacity.
We will take five measures to resolve the serious problem of overcapacity, and strive to make a breakthrough in this area through efforts over a period of time.
