The overcapacity problem of non-ferrous metals is still outstanding

Abstract At present, the efficiency of China's non-ferrous metal enterprises continues to decline, and overcapacity is more prominent. Resolving overcapacity as a key task of the country this year, the industry such as electrolytic aluminum can be out of the predicament. At the just-concluded 6th meeting of the 3rd China Nonferrous Metals Industry Association, around...
At present, the efficiency of China's non-ferrous metal enterprises continues to decline, and overcapacity is more prominent. Resolving overcapacity as a key task of the country this year, the industry such as electrolytic aluminum can be out of the predicament. At the just-concluded 6th meeting of the 3rd China Nonferrous Metals Industry Association, around the country's steady growth, restructuring, and overcapacity, Tian Yong, general manager of Yunnan Metallurgical Group, said that it is necessary to solve the problem of overcapacity. Improve the international competitiveness of enterprises.

Tian Yong believes that it is the means to resolve excess capacity and reduce the amount of international discourse. In the face of the large capacity of developed countries, it has become the industry's “big Mac”, while China's large production capacity has formed vicious competition and overcapacity. He believes that “the key is that we do not have international competitiveness and the right to speak.”

He said that the core of a country's competitiveness lies in the environment in which competitiveness is formed, not in what the company does and how it is done. From the current situation and level of the domestic real economy, there is no shortage of excellent enterprises and enterprise managers, and the lack of a fair competitive environment. Some monopoly groups control the country's high-quality resources in their hands, making the basic raw materials industry forced to bear financing costs far above the international average level, combined with the lack of effective and reasonable energy price formation mechanism, domestic logistics and transportation conditions and high logistics costs. Compressing the living space of China's outstanding enterprises, and then seeking to improve international competitiveness will be difficult.

He believes that under the conditions of a market economy, the government, enterprises, and society should do their part, and the government creates an environment, builds an industry, and people are happy. "You can't just use the administrative eye to judge whether there is excess capacity, and don't give the industry a qualitative character."

As early as 1998, Tian Yong proposed the idea that the development of the energy-carrying industry matches the energy model. Last year, he proposed that the development of the non-ferrous metals industry must fully consider the rationality of regional distribution. Facing the complicated and ever-changing economic environment in the world, Tian Yong believes that current non-ferrous metal enterprises should take advantage of the potential to resolve the potential of excess capacity and focus on improving their international competitiveness and voice.

Tian Yong suggested that to resolve excess capacity, we must first pay attention to the rationality of regional distribution, and we must not make a one-size-fits-all approach. Second, the relevant government departments should start and introduce a mechanism for price linkage between energy and energy-carrying industries as soon as possible, especially in areas with rich energy and resources. First, the third is the application of non-ferrous metals. For energy-saving and environmentally friendly products and projects, the state should formulate practical and feasible measures to support financial, fiscal, taxation, research and development, and projects.

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