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Overcapacity in the face of non-ferrous metals

Overcapacity in the face of non-ferrous metals

First, export growth slowed down, put pressure on the production release.

The globalization of China by foreign investment promotion, investment and export-related industries, in almost all of the early foreign-led by the foreign market ability, generally will not overcapacity. But private capital and greatly enhanced the strength of local government, the "duplication of investment," the institutional problems began to reproduce. After rapid expansion in production capacity, there will bargain with each other phenomenon, once the international market demand, the industry suffered a fatal blow.

PV industry is a typical case. According to "China's PV Industry Development Report" of the data, China's photovoltaic industry after 2004 experienced a rapid development process, consecutive five-year growth of more than 100%. After rapid expansion in investment, serious excess capacity, according to an independent third party research firm Dahe Consulting statistics show that in 2010, capacity utilization of domestic polysilicon 52.94%, silicon ingot capacity utilization of 47.83%, crystalline silicon cells 40.48% capacity utilization, thin film solar cell production capacity utilization was only 20%.

PV products in China, 95% for export, the European market has always been the focus of the proportion of about 75%, Germany and Italy account for 50% of the European PV market share, due to the debt crisis in Europe, the European reduced state subsidies for photovoltaic cells, and reduce the demand for photovoltaic products. The result is China's photovoltaic industry suffered a serious crisis. Overseas listing of the 10 leading companies, eight reported losses. Suntech has long been considered the city's largest solar production company, and its three quarterly net loss of $ 116.4 million, the biggest loss. Many small businesses already closed.

Photovoltaic industry is a microcosm of many of the export sector, as the country's financial debt crisis in Europe and America, the second half of 2011 marked decline in export demand in China, if the trends are not significantly improved, while in 2012 many export-oriented industries will experience overcapacity blow.

Second, the real estate slowdown in investment-related industries will make a serious overcapacity.

From the preceding analysis shows that the Chinese economy from the cycle of excess capacity is another important factor is the rise of the real estate industry. In 2009 and 2010, easing monetary policy to stimulate the real estate investment growth is very strong, stimulated the demand for steel, optimistic expectations of the steel industry has stimulated a rapid growth in investment, slow down once the real estate investment, the steel industry immediately suffered overcapacity blow. October 1, 2011, black metal mining, smelting and rolling processing industry supply of 416.52 billion yuan in fixed assets investment, up 18.5%. With the slowdown in real estate sales, real estate investment has slowed down from September, steel sales problems. October 77 steel companies by the loss of 9 to September 25, expanded to 32.5% loss, the loss amounted to 2.125 billion yuan, an increase compared to September, 1.83 billion yuan. October's total profit and sales margins have been reduced to 1.38 billion yuan and 0.47%, record lows for the year.

Similar to the steel industry have aluminum, cement, coal, etc., in the past three years, the rapid expansion of production capacity, reduced demand for the future are facing difficulties Rock Crusher For Sale .

From the production, China's iron and steel, cement, coal, nonferrous metals (mainly copper) production have been reached or exceeded half of global output, if the real estate slowdown, these products will face the threat of overcapacity. Thus, in 2012 China's economy faces the biggest challenge is overcapacity.