Measurement Of Overcapacity In Anhui Iron And Steel Industry And Its Impacts On Export

The steel industry occupies an important proportion in China’s national economic accounting.In 2003,the overheated investment caused a phenomenon of overcapacity.In 2015,the capacity utilization rate of steel industry was only 64.8%in China,this shew a state of serious surplus.In 2016,the supply-side reform supported capacity reduction strongly.National steel companies responded to the call for capacity elimination.Since 2015,the rapid development of the real estate and automobile industries in Anhui Province has driven boom of the local investment boom.As the real estate and automobile industries are the major downstream demand markets for steel products,the steel industry is stimulated by high demand in the short term,and the supply has increased.The increase in demand is less than the increase in supply,resulting in an imbalance in supply and demand of steel products and excess capacity.The phenomenon of overcapacity in the iron and steel industry in Anhui Province is reflected in the decline in the price of steel products and the loss of steel companies.As of October 31,2017,the shutdown of steelmaking converters of Masteel Group has stopped production of 24 enterprises,and their Unemployment increased.At present,overcapacity has become an obstacle that cannot be ignored in the process of economic transformation in Anhui Province.In this paper,the relevant literature theory of overcapacity is thoroughly sorted out,and I use the panel cointegration method count the overall degree of overcapacity in the iron and steel industry in 2007-2016 and the degree of overcapacity in the subdivision industry in Anhui Province.The province’s iron and steel industry as a whole is overcapacity.However,in the subdivided industries,the upstream mining industry has excess capacity and the downstream smelting and processing capacity is insufficient.Therefore,there is a structural overcapacity;at the same time,the capacity of the Anhui steel industry is studied.It elaborated on the independent choice of exports,the quantity and amount of exports,the quality of exports,and the geographical location of exports.Finally,it proposed measures to improve capacity utilization and seize the results of removing production capacity to promote the countermeasures and suggestions for steel exports.This article discusses separately from the following five sections:The first part describes the following main contents in detail:the background and significance of the research,the research status at home and abroad,and the main contents and methods of research,the meaning of production capacity,the meaning of excess capacity,the mechanism of overcapacity formation,and the overcapacity Measure methods,overcapacity on the export product scale and the impact of export product quality and other theories are elaborated;the second part analyzes the current situation of overcapacity in the iron and steel industry in Anhui Province.Overcapacity is reflected in the decrease in steel prices,investment evacuation and loss of steel companies.The third part mainly includes two empirical models,namely,measurement of overcapacity in the iron and steel industry in Anhui Province and measurement of influencing factors.The data comes from the "China Industrial Economic Statistics Yearbook" from 2000 to 2016,the China Iron and Steel Industry Association,and "China Steel Industrial Yearbook,Anhui Statistical Yearbook,China Urban Statistical Yearbook,China Labor Statistics Yearbook,and Hefei Customs Data.The fourth part first combed the theory of overcapacity on exports,followed by Anhui Province.The fifth Chapter draws conclusions and proposes countermeasures and suggestions from both the corporate and government levels to improve exports and achieve a positive interaction between capacity and exports.