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Messagepar Xiaoyeshi » 07 Juin 2018, 02:29

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URUMQI, Nov. 16 (Xinhua) -- Crack. Loaded with heavy snow, a willow branch snaps on to the roof of an SUV parked outside Yili Iron and Steel, a steelworks in northwest China.


This year winter is set to be colder than ever, and the same could probably be said for the Chinese steel industry.


Oversupply in China's steel sector has caused years of plunging prices and factory shutdowns amid a sluggish economy.


Last year, Yili Iron and Steel, northwest China's Xinjiang Uygur Autonomous Region, registered a loss of 600 million yuan (87 million U.S. dollars). Many other major Chinese steel manufacturers faced similar difficulties. Wuhan Iron and Steel, China's first specialist steel maker, posted a net loss of 7.5 billion yuan (1.1 billion U.S. dollars) for its listed subsidiary in 2015.


Despite a recent rebound in steel prices and market demand, oversupply still hinders the industry.


The second day after hard snow, Yili Iron and Steel turned off a 530 cubic meter boiler. This marks the beginning of attempts to reduce output every winter.


""Winter in Xinjiang is long and cold, leading to a sharp shrink in market demand from the construction sector. So capacity-cutting becomes routine for local steel makers,"" said Yuan Zhizhong, deputy chief engineer of the group.


The capacity-cutting period can last up to four months.


Across China, steel makers are encouraged or forced to shut down or reduce output to shed unnecessary production.


China has shut down several steel plants with a total capacity of over 90 million tonnes over the past five years.


It plans to further reduce crude steel output by 100 million to 150 million tonnes by 2020, according to the ministry's 2016-2020 plan.


But the ""iron men"" on the factory floor at Yili Iron and Steel are much more optimistic.


""Do you know at what temperature molten iron turns into steel?"" asked Bahnur, a steel worker at Yili, while sending cement and other auxiliary materials through a conveyor belt. ""1,600 degrees Celsius.""


Proficient in operations, Bahnur has gone through ups and downs since he started at the company in 1994.


""Today things are much better than 18 years ago,"" he said.


Having been in the red for five years, the then-state-owned steel maker stepped into a new era in 1998, becoming a mixed ownership company using an employee stock ownership plan.


""Back then, nobody could see the road ahead,"" Bahnur said.


Even capacity-cutting for a third of the year, Yili Iron and Steel still has 86-percent capacity utilization, much higher than the national average of 67 percent.


Capacity utilization refers to the extent an enterprise uses its full production capacity, and. Wholesale Soccer Hoodies China Wholesale Hoodies Wholesale Hats Wholesale Hats Wholesale Hats Wholesale Hats Wholesale Hats Wholesale NBA Jerseys Wholesale NHL Hoodies Wholesale NCAA Hoodies
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