Industrial electricity and production data deviate from eliminating backward production capacity or making fraud

Core Tip: Zhao Yuezhen, director of the Changsha Municipal Economic Commission, found in recent investigations that some enterprises are very tired in the elimination of production capacity.
According to the latest statistics released by the National Energy Administration, the total electricity consumption in the whole society increased by 10.7% in July, of which industrial electricity consumption increased by 8.5%, and heavy industry electricity consumption increased by 9.7%.
However, the same period data released by the Bureau of Statistics showed that some high-energy-consuming industries, such as steel, cement, automobiles, and some refined oil products, saw a decline in the chain production in July. In July, steel production fell by 3.77 million tons, a decrease of 5.3%, cement production decreased by 5.5%, and vehicle production decreased by 6.2%. The divergence between industrial electricity consumption and industrial production data in July has once again triggered doubts in the industry about the authenticity of the data on capacity elimination.
"A central province closes the annual smelting of about 500,000 tons of electrolytic aluminum > electrolytic aluminum backward production capacity data, it may be mixed with water, otherwise the industry's electricity consumption is unlikely to increase so fast." Zhang Wei of Luzheng Futures believes.
According to the National Bureau of Statistics, China's electrolytic aluminum output reached 1.352 million tons in July, down 3.6% from the 1.41 million tons in June. At the same time, another major consumer of electricity in the non-ferrous metals industry refined copper, and its output also fell by 5.7%. But the strange thing is that the reporter learned from the China Electricity Council that the electricity consumption in the non-ferrous metals industry rose sharply in July.
“Even if the capacity of electrolytic aluminum in Ningxia exceeds 300,000 tons, it will not make up for the statistical gap in the increase in electricity consumption caused by the decline in production capacity of 500,000 tons.” Zhang Wei said.
Zhao Yuezhen, director of the Changsha Municipal Economic Commission, found in a recent investigation that some enterprises are “catty” in the elimination of production capacity.
For example, some companies have already received 1.89 million yuan of incentive funds for shutting down backward production capacity in the country last year, but found that their “eliminated” production lines are still in production; others have closed the total plant capacity, but are located in the high-tech zone. The branch has not been closed.
"If necessary, relevant government departments may require power supply companies to stop supplying power to enterprises with backward production capacity according to law." For the "small tricks" played by local enterprises, the Hunan Provincial Department of Industry and Information Technology issued a warning.
To this end, the Hunan Ministry of Industry and Information Technology is preparing to intensify efforts to shut down the backward production capacity of enterprises listed in the list of eliminated backward production capacity by the end of September 2010.
The survey results in Hunan are a microcosm of the elimination of false and backward production capacity by some enterprises in the country.
A person from the industrial department of a central province has said that many companies secretly resume backward production capacity when the economy accelerates. Although the province announced that it had completed the elimination of the backward production capacity of the cement kiln last year, there were many new cement kiln enterprises in the province on the “blacklist” of the Ministry of Industry and Information Technology.
“Many companies cut production more because they are in a downturn. When market prices pick up, they tend to resume production again,” said the source.
The reporter learned that steel production capacity began to recover in late July due to rising steel prices. Taking Tangshan as an example, the city's report pointed out that the ferrous metal smelting and rolling processing industry's electricity consumption decreased in July, but recently, with the improvement of steel production, the city's maximum power load has continued to rise since the 25th.
Zhang Lin of Lange Steel Information Research Center also believes that the current national steel production data may have a certain "moisture". In order to protect their own interests, some enterprises may have fraudulent behaviors from enterprise capacity data to various equipment data.
In the small steel enterprises in Tangshan City that Zhang Lin had visited, the phenomenon of output was reported. “A city government has certain restrictions on steel companies. For example, one company has limited its production of 3 million tons since 2004. From the reported data, it has not exceeded the standard, but in fact there is capacity expansion.”
Xue Jing, director of the statistics department of China Electricity Council, said that from the industrial electricity consumption data in July, whether it can be concluded that the electricity consumption of the entire high-energy-consuming industry is growing rapidly is difficult to draw conclusions.
In July, the added value of industrial enterprises above designated size increased by 13.4% year-on-year, 0.3 percentage points lower than that in June. From January to July, the added value of industrial enterprises above designated size increased by 17.0% year-on-year, down 0.6 percentage points from the first half.
Sheng Laiyun, a spokesperson for the National Bureau of Statistics, said that the industrial growth rate dropped by 0.3 percentage points, 70% of which was caused by the decline in the growth rate of the six high-energy-consuming industries. This is mainly because the country has increased energy conservation since the second quarter. The supervision of emission reduction has increased the elimination of backward production capacity.

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