Overcapacity in five major areas of supply of aluminium sheet materials - Ceramic aluminium sheet, punched aluminium sheet, aluminium ceiling mesh, strong aluminium sheet, carved aluminium sheet, special-shaped tile, oak sheet, aluminium sheet and other products - discrimination and analysis of overcapacity in five major areas "from 100 million tons to 800 million tons now, still talking about overcapacity," Deputy Secretary-General of China Iron and Steel Industry Association said in an interview with China Investment. In recent years, SISCO announced that at that time China's iron and steel production capacity had reached 800 million tons, but in practice, only 400 million tons of compliance with the steel production capacity, there are 400 million tons of capacity without national approval.
Since 1999, when it was put on the cap of overcapacity, the capacity of steel industry has been expanding constantly with the increase of demand. On the basis of demand forecasting, the country has been making serious plans for capacity expansion of iron and steel industry. However, as demand has repeatedly broken the planned capacity, the market capacity has also repeatedly broken the national plan. For example, in the State Council's "Iron and Steel Property Adjustment and ZTE Plan" at the beginning of 2009, the consumption of crude steel in China was estimated to be 430 million tons in the past, but the actual consumption in the past reached 570 million tons. China Steel Association estimates that the consumption of crude steel will reach 680 million tons. At that time, only 400 million tons of iron and steel production capacity was agreed by the state, and 400 million tons of irregular production capacity in the market will compensate for the demand gap.
In fact, in the past 10 years, the micro-control of aluminium sheet data has been confirmed by the authorities. China's iron and steel, cement, non-ferrous metals and other industries are constantly defined as "overcapacity" industries, and are applied to relatively serious property policies such as location, finance, taxation, project approval and so on.