Statistical Measure And Cause Analysis Of Excess Capacity In China’s Iron And Steel Industry

After decades of development,China’s iron and steel industry has made remarkable achievements,China’s steel production,regardless of quantity or quality has been greatly improved.However,with the growth of economic,market supply and demand changes,China’s iron and steel industry overcapacity problem ibecome more and more serious.The outstanding problem of excess production capacity,has aroused great attention of all parties,so far,the governance of excess capacity has experienced three stages.From 2006 to 2009 on China’s overcapacity in the industry structure adjustment,from 2009 to 2012 further intensify its efforts to eliminate backward production capacity,from 2013 to 2015 China’s distraught cleaning serious excess capacity of enterprises,the problem of excess production capacity has gradually become the focus of the work of the government.Firstly,the status and capacity of the iron and steel industry at home and abroad to excess has made the simple introduction,China’s iron and steel industry in the rapid expansion of the scale of the also exist at the same time many problems,compared with the BRIC countries,China’s iron and steel industry,industrial concentration is very low,production enterprises lack of technical record,product structure is not reasonable,industry upstream resources lack in short supply,lack of demand for the downstream industry.From 2008 so far,the global steel industry operating rate was below 80%,excess capacity is very serious,and the international situation is the same,China’s steel industry overcapacity situation is very grim,and in recent years the capacity utilization rate is declining,in 2015,the capacity of China’s iron and steel industry,the use rate is less than 70%.After it has been compared to the advantages and disadvantages of the measure of capacity in excess of several commonly used methods,this paper uses data envelopment analysis(DEA)method for China’s iron and steel industry 27 listed companies in 2011 to 2014 capacity surplus measure,if it less than 75%there is excess capacity.In the measurement of iron and steel enterprises,80%of the corporate capacity utilization rate is less than 75%,indicating that there is widespread overcapacity in China’s iron and steel industry,whether it is a large state-owned iron and steel enterprises or private small and medium-sized steel enterprises,there are a certain degree of overcapacity.In this paper,detailed analysis of China’s iron and steel industry produce excess capacity reason,found that is by the enterprises in the industrial concentration degree is low,the investment is expected to distort and mergers and acquisitions result is insufficient,government system is not scientific,evaluation mechanism is not perfect and the market supply and demand imbalance three aspects together with the results.