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Wen Jiabao told the leaders of the municipal party committee and relevant responsible persons of the Baosteel Group that the iron and steel industry is a barometer of industry in many industries. The financial crisis has caused great difficulties for the development of the steel industry. It is necessary to study the policy of revitalizing the steel industry, speed up structural adjustment, protect advanced production capacity through mergers and reorganizations, and eliminate backward production capacity.
At present, the steel industry has suffered the most severe cold current in recent years. The steel price has dropped by 40% since July, and the price has dropped to the level of early 2007. All steel companies have to reduce production to cope with the cold winter of the steel market as a domestic synthesis. The Baosteel Group, which has the strongest strength, has also started to reduce the number of overhauled equipment since September.
Just a few days before Wen Jiabao traveled to Baosteel Group, Yu Zhengsheng and other leaders of the Shanghai Municipal Committee had first gone to Baosteel to investigate. Xu Lejiang, chairman of Baosteel Group, presented relevant policy recommendations to Shanghai on behalf of Baosteel and stated that Baosteel will go all out to cooperate with Shanghai in doing a good job of the World Expo and other work.
Wen Jiabao Visits Baosteel: Research Revitalizes Iron and Steel Industry Policy
On November 22nd, Premier Wen Jiabao of the State Council, accompanied by Yu Zhengsheng, member of the Political Bureau of the CPC Central Committee and secretary of the Shanghai Municipal Party Committee, and Mayor Han Zheng, inspected large-scale enterprises in Shanghai. He first came to Baosteel Group, Baosteel's parent company, to inspect the technical center and silicon steel production line, and listened to the company's report. According to the person in charge of the Baosteel Group, the market price of steel products fell sharply after September, and the company’s efficiency declined sharply. In the face of difficulties, they further optimized the product structure, improved lean manufacturing capabilities, strengthened internal management, and improved the competitiveness of enterprises.