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New capacity of iron and steel industry may enter the period of centralized release in 2020

Since 2017, China's iron and steel industry capacity replacement projects have increased gradually. In 2019, China's new blast furnace production capacity is less, and 2020 will usher in the peak period of production. According to the public data, a total of 107 million tons of iron making capacity and 82.5 million tons of steel-making capacity will enter the release period in 2020. Capacity replacement of iron and steel industry is version 2.0 of "de capacity". In key control areas, reduction replacement is adopted to launch new capacity.

The great development of China's iron and steel enterprises began in 2000. After 20 years of rapid development, the original blast furnace has lagged behind in production technology and production efficiency. The blast furnace has entered the period of centralized replacement, which is also the cause of a large number of replacement projects in the iron and steel industry in recent years. This has also stimulated investment in the iron and steel industry to a certain extent. In recent three years, investment growth in the iron and steel industry has increased significantly. One reason for the increase is the addition of environmental protection equipment and the other is the introduction of replacement equipment. Considering that steel profits began to decline in the past two years, and bank credit policy tightened, the possibility of delayed production of projects under construction is not excluded.