The Minister of Environmental Protection said that environmental supervision will cover the whole country for the first time this year! The foundry industry will face an unprecedented reshuffle!

Yesterday, Minister of Environmental Protection Chen Jining revealed at the China Development High-level Forum hosted by the Development Research Center of the State Council that the central environmental protection inspection will cover the whole country for the first time this year.



Chen Jining said that the central environmental protection inspection with Chinese characteristics had previously inspected 16 provinces and held more than 6400 people accountable,This year, 31 provinces will be covered.Promote local governments to implement environmental protection responsibilities.In addition, China has a vast territory, a large economy, many pollutant companies, and great differences between regions. It is difficult to effectively manage only by the current supervision team and methods. With the application of new technologies, the Ministry of Environmental Protection is implementing an ecological environment big data construction project. Build a nationwide management platform for environmental supervision and law enforcement, online monitoring of environmental quality and key enterprises, environmental assessment approval and management, and emergency consultation and response to heavy pollution weather. "The application of these platforms will enable us to see the law enforcement process of every law enforcer, the evaluation content of every EIA report, and the history of every monitoring data."


This year, the foundry industry will face a big reshuffle, casting enterprises large "die", a large number of workers face unemployment!



In fact, since 2014, the foundry industry has begun a reshuffle model, plagued the foundry market is "low price competition".As the prices of raw materials such as pig iron and ductile iron have been low for a long time, this also makes foundry enterprises have lower costs in the production and manufacturing process, and thus enables some small and medium-sized foundries to compete in the market at lower prices. However, after all, the meager profits finally made some enterprises unable to make ends meet, leading to a wave of closures in 2015.


By 2016, environmental protection was unprecedentedly strict, production was suspended in various places, raw materials began to rise wildly, pig iron prices rose from more than 1800 to more than 3000, and many foundries fell into the "blood pool" of rectification,Some enterprises are still struggling, thinking that everything will be all right after the 3.15 of this year. Unexpectedly, various localities began to postpone the resumption of production.


Minister Chen of the Ministry of Environmental Protection also revealed that the central environmental protection inspection will cover the whole country for the first time this year, and a large number of casting people will be unemployed.According to feedback from intercontinental foundry colleagues, judging from the current rectification situation in Linzhou, Henan province, after the rectification, there are only full-automatic production lines. there are more than 300 foundries in Linzhou and about 20 full-automatic assembly lines. however, these manufacturers with assembly lines employ less workers and have not yet solved the employment problem of a large number of unemployed workers.



Which of the small and medium-sized foundries was not established through hard work. In the face of strict environmental protection investigation and pressure on production capacity, they can only carry it to death and are not willing to give up. Then, the last straw that killed the small and medium-sized foundries came-price increase!


Some people say that price increases should be a good thing! After so many years of low-price competition, we are looking forward to rising prices. Price increase is a good thing that is relatively speaking, for large foundry enterprises that is the best thing, the ex-factory price of castings is rising, dealers in order to avoid price increase caused by the loss of price difference, will be a large number of purchase. The factory was able to have a lot of money. At the same time, large foundry enterprises have material reserves, casting price increases are likely to make a fortune. Large foundry companies are in a dominant position when purchasing raw materials, and the price of purchased raw materials is relatively lower than the market price.


But price increases can be a disaster for small foundries. Originally relying on low-cost and low-price to occupy the market, raw material prices soared, directly leading to a sharp rise in costs. The tires originally produced are sold at low prices. Once the price rises, I'm afraid even the previous market may be lost. At the same time, due to the shortage of raw materials, these small factories cannot get preferential prices like large tire companies when purchasing raw materials, and may not even be able to buy raw materials. This is not difficult to explain why prices are soaring, and when large foundry companies are stepping up production, some small foundries have stopped work and have a holiday ahead of schedule.


Environmental protection, production capacity and foundry industry market pressure from many aspects, small and medium-sized factories will be submerged in the reshuffle tide, 2017 foundry market will be a what kind of taste? I'm afraid we can only foundry people to experience!


2017, the casting industry into the most difficult year, casting brothers! Hold on!

Source: Intercontinental Foundry