Study On Capacity Adaptability Of Steel Industry In Hebei Province Based On Circular Economy

Steel output in Heibei Province ranked first, at the same time, it develops rapidly, it has been identified as serious excess capacity industry. Severe excess capacity will cause waste of resource and impact to the surrounding environment, Circular economy is the only way for sustainable development of steel industry. The overall industry overcapacity or excess capacity of some products also needs further study, each of them is contrary to the principle of circular economy. For different products, studying the capacity adaptability of the steel industry in Hebei Province in economy circular condition, which is whether capacity is suitable for the development of national economy or not, is the important content of this research.First of all, according to historical data from 2003 to 2009, use multiple linear regression model theory to build equation of demand and output for steel in circular economy conditions. Then, forecast demand and output of steel from 2010 to 2012 using above model. Because the ratio of steel output and crude steel output is within a defined range, crude steel output can be calculated based on steel output. Finally, comparing demand and output to capacity, use capacity utilization and value which demand is greater than capacity to judge the adaptation for different products.The conclusion of this paper is that the steel industry in Hebei Province is staggered excess capacity and excess capacity of some products.