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On February 4th, "the State Council's Opinions on Resolving Excess Capacity and Realizing Development from Difficulties" was officially released, which made the steel industry feel the breath of spring in the deep winter. The Opinions clearly stipulate that on the basis of eliminating backward steel production capacity in recent years, starting from 2016, crude steel production capacity will be reduced by 100-150 million tons in five years. Substantial progress has been made in industry merger and reorganization, industrial structure has been optimized, resource utilization efficiency has been significantly improved, capacity utilization rate has become more reasonable, product quality and supply capacity of high-end products have been significantly improved, economic benefits of enterprises have improved, and market expectations have obviously improved.

In addition, with the consent of the State Council, an inter-ministerial joint meeting system was established to resolve excess capacity and extricate the iron and steel industry from difficulties, strengthen organizational leadership, and strengthen overall coordination and cooperation; Relevant departments have studied and formulated eight special supporting policy documents around fiscal and taxation financial support, employee placement, land, environmental protection, quality and safety.

The Ministry of Industry and Information Technology officially announced the "Adjustment and Upgrading Plan for Iron and Steel Industry (2016 ~2020)". The plan proposes that by 2020, significant progress will be made in the structural reform of the supply side of the iron and steel industry, and the whole industry will be fundamentally freed from difficulties. The contradiction of overcapacity has been effectively alleviated, and the crude steel production capacity has decreased by 100-150 million tons. Strive to achieve remarkable results in the structural reform of the supply side of the steel industry by 2025. In addition, the plan predicts that the domestic crude steel consumption will reach a peak of 760 million tons in 2013, and it is expected to drop to 650-700 million tons in 2020, and the crude steel output will be 750-800 million tons.

Since the beginning of this year, the anti-dumping actions initiated by the European Union against China Iron and Steel have been swift and violent. After levying taxes on China's cold-rolled coils, hot-rolled coils and medium plates, the European Union recently launched an anti-dumping investigation against China's hot-dip galvanized coils, which shows that the European Union is close to completing its trade investigation on China flat products. After China's exports of hot-rolled, cold-rolled and coated sheets to the United States are completely restricted, its exports to the European Union will also end.