The raw material Department of the Ministry of industry and information technology inspector Luo Tiejun said on the 13, since the capacity to carry out the work, about the capacity to control or production has been debated, the NDRC and the Ministry has identified the "iron and steel industry production capacity, not only to control production" principle, determined by the market yield. At the same time, in order to prevent malicious speculation in the market, steel prices ups and downs, the Ministry will guide local science to grasp the intensity and rhythm of production.

Luo Tiejun in the metallurgical industry planning and Research Institute organized the 2017 Chinese Steel Development Forum said, since the capacity to carry out the work, about the capacity to control or production, or cut production plan with respect to the market has been debated, put forward many suggestions yield control mechanism, such as the proposed control production requires the provinces according to the output of 2015 signed a certain proportion the goal, as control production practices.

"After repeated comments especially the association of enterprises and the views of the industry, development and Reform Commission and we carefully study, now the determined by the market yield, iron and steel production capacity to the capacity to control production, not" principle."

Luo Tiejun said, the effectiveness of the work to capacity is not simply look at the lifting of production, as long as the market demand, we need to have the corresponding production outside. The purpose of production capacity is not to reduce production, but to reduce the total production capacity and promote the utilization of capacity.

Luo Tiejun said that after the last year to complete the production tasks, some institutions put forward the "effective capacity" and "invalid capacity" concept, through the relationship between the capacity and output of confusion, which will be discontinued after the resumption of production capacity output as the new capacity, and has put out capacity production capacity ignored, and come to the conclusion that "Chinese crude steel production capacity does not fall but rise to wrong conclusions", this is simply untenable.

He stressed that the production and operation of poor inefficient capacity is a part of iron and steel production in the last year, Yajian crude steel production capacity of 65 million tons is really really really do "go back".

"These (discontinued) capacity is objective existence, as long as the industry situation improves, the capacity will stop trying to open up.". When we go to capacity, remove this part of production capacity, remove this part of the equipment, to ensure that these production capacity in the market is no longer a good time to open up, this is a key to the production capacity."

Luo Tiejun said that the main task of resolving overcapacity in 2017 the country according to the law will be completely banned as a land of steel iron and steel production capacity to ensure that, until June 31st of this year to completely ban bar. "The first half of the year to concentrate on cracking down on ground of steel work, the second half of the year to solve all reported up to resolve other problems of capacity."

In the process, in order to prevent the market malicious speculation, steel prices ups and downs, the Ministry will guide local science to grasp the intensity and rhythm of production.

The definition about steel technology, Luo Tiejun said that the China Steel Industry Association, the five associations set "on the support of the fight against" ground of steel ", the definition of power frequency and medium frequency induction furnace using a range of opinions" have been clearly defined, the recent ministerial Joint Conference Office issued a document clearly defined by this country.

At the same time, Luo Tiejun noted that strong pressure in the country banned the land of steel medium frequency furnace, individual Design Institute began to design the "enterprise in intermediate frequency furnace to electricity scheme. He stressed that this is not allowed, and the state to resolve excess production capacity requirements, contrary to, we must resolutely put an end to.