In the plant area of a steel company in Hebei Province, the person in charge of the plant pointed to a distance and told us that a blast furnace that stood there was completely demolished this year because it entered the capacity reduction area. In 2016, such scenarios were not uncommon across the country. According to data from the National Development and Reform Commission, as of now, this year's 45 million tons of steel and 250 million tons of coal have been overfulfilled. Some provinces are even far ahead of schedule. A good start, does it mean that the difficulty of reducing production capacity will be reduced next year? (December 22, Yangguang News)

　　 The unevenness of things, the affection of things. It can be said that the completion of the task of reducing overcapacity in steel and coal in 2016 has benefited from the great attention of the Party Central Committee and the State Council. Especially in late November, Premier Li Keqiang specially convened an executive meeting of the State Council, demanding that two aspects should be addressed in the overcapacity reduction work. In particular, the State Council’s investigation team was set up to analyze and severely deal with the bad behaviors of steel companies in Jiangsu and other places in the reduction of overcapacity, which promoted the full implementation of this work. Looking at the current situation of capacity reduction work in 2016, on the one hand, the total production capacity subtracted by steel and coal companies are basically resource-exhausted and hopeless companies. If the country does not have policies in this area, they will not be able to reproduce. , These accounted for a large proportion of the total capacity reduction. There are two coal mines in the area where the author is located, and there are no resources to mine underground. This way, in line with the state’s good policy this time, I get subsidies that benefit enterprises and people. On the other hand, the rebound of steel and coal prices this year has continued to rise. Saying goodbye to the situation of "cabbage" prices, there are both overcapacity reduction and other factors. As far as coal companies are concerned, the reason why prices have risen rapidly in the short-term is that since July this year, the country has experienced high temperatures and little rain, insufficient hydropower output, and a substantial increase in thermal power consumption, which has driven coal demand soaring, and the entire coal market has been reducing capacity The next supply is tight. In this way, under the background of price increases, the willingness of enterprises to actively reduce overcapacity may be affected, and the promotion of overcapacity will also face greater resistance.

　　 The way of all benefits, keep pace with the times. Undoubtedly, the task of reducing production capacity for steel and coal enterprises is not accomplished overnight, but a long-term and arduous task. At the Central Economic Work Conference that closed on December 16, it was proposed that next year, we will continue to promote the reduction of production capacity in the coal and steel industry, and at the same time do a good job in reducing production capacity in other industries with serious overcapacity.

　　 From this point of view, steel and coal enterprises must work hard to reduce production capacity while summarizing their work in 2016, while adhering to seeking truth from facts, maximizing strengths and avoiding weaknesses, and making real efforts and hard work in intensive cultivation. First of all, it is necessary to study which capacity should be removed, and the current market price cannot be optimistic. The capacity reduction index has been reported, and there is the idea of changing the course and seeking to continue production. Secondly, in the process of reducing overcapacity, companies must consider issues such as the diversion and placement of personnel, debt clearing and disposal, and product transformation and upgrading. The follow-up work of reducing overcapacity should not cause "faults" and social instability. Third, it is necessary to improve the internal strength of the enterprise and enhance its endogenous motivation. It is not possible to adjust its development measures due to changes in the external environment, to minimize the impact of accidental factors on overcapacity reduction, and to effectively fight the protracted battle against overcapacity.

　　 opened the bow without turning back the arrow. I believe that in the new year, with the favorable policies of the Party Central Committee and the State Council, the work of reducing production capacity of steel and coal enterprises will be more in-depth, stricter and more stable.