Research On Reducing Capacity Of Tangshan Iron And Steel Industry

With the continuous development of social economy,the steel industry,as a basic industry for promoting the economic development,has become an important reference for measuring the level of economic development in our country.With the deepening of reform and opening up,China’s steel industry is facing many challenges.Simultaneously,since Chinese economy has started to transform from high speed highway to middle speed highway,the demand for iron and steel increases much slower.Under the above circumstance,the oversupply problem can not be ignored.Tangshan is a traditional industrial city,as the fundamental industry,it keeps pushing forward the development of the economy of the city and providing a considerably stable revenue for the government.With the economy of the city advancing,there comes to an even more intense competence in the market.Based on the current existing technology and industrial scale,the corresponding companies of this kind start to increase their investment and hence even exacerbates the oversupply problem,thus it has became an unavoidable task to be solved.Firstly,this essay is based on the theories of oversupply and eliminating the oversupply.Simultaneously,it uses the DEA model as a tool to analyse the utility rate of the products and the level of its oversupply,which can help grasp a comprehensive knowledge of the current circumstance of Tangshan’s iron and steel industry.Then,it also studies the reason why the problems occur and states the necessity to solve this problem.In the end,by studying and learning the similar experience from foreign countries solving this oversupply problem,this essay proposes several feasible policies that can be applied.The study of the essay will help deepen the understanding of the problem of Tangshan’s oversupply and hence control its development on track,which can finally solve the oversupply problem and create a healthy and sustainable economy.