Export fluctuation and overcapacity in China’s manufacturing industry--The inspection of the causes of excess capacity from the perspective of external demand

Intuitively speaking,there is an inverse proportional relationship between exports and overcapacity,which means in export’s busy season enterprises would expand output and improve capacity utilisation rate but control yields to avoid dull sale in slack season,causing exacerbated excess capacity.However,this is just the reflections of“sales effect”on overcapacity by export fluctuation.For some enterprises,there is indeed“competition effect”which may alleviate overcapacity because enterprises face even more fierce domestic competition for the sake of weak exports and may increase the utilisation load of existing capacity in order to cut costs.A test is conducted in this paper to verify the relationship between export fluctuation and excess capacity based on data of China's manufacturing industry from 2001 to 2013.The overall results indicate that export fluctuation is not the significant cause for excess capacity.In the small and medium-sized enterprises or in industries with higher proportion of non-state capital,the negative relationship between exports and excess capacity is more obvious,with“sales effect”taking a dominant position.On the other hand,under the influence of“competition effect”,the relationship between the two may be positive.Thus,external demand shocks exert different influence on the alleviation of excess capacity of different industries,and extensively driven exports may not have anticipated effect on the dissolution of the excess capacity.To regulate overcapacity with the aid of external market,a fair and orderly competition environment should be provided to the export subjects of different size and ownerships.

Rethinking China's Macroeconomic Policy

Six years have passed since the global financial crisis began.Yet,mainstream economists are still far from reaching a consensus on a framework for restructuring macroeconomic policy.In April 2013,many top scholars attended the International Monetary Fund's(IMF) second conference on "Rethinking Macro Policy".During the conference,the following basic assessments with respect to macroeconomic policy were reached:economists and policy-makers have entered a "brave new world" where they face more problems than effective solutions and the image of a new macroeconomic policy framework remains opaque.Based on discussions at the conference and the dissertations of important scholars over recent years,this paper provides a systematic review of the reflections of mainstream economic academia regarding the restructuring of a macroeconomic policy framework,with a view to providing an orientation to China s ongoing reform of macroeconomic regulation.

Development and Utilization of the World＇s and China＇s Bulk Mineral Resources and their Supply and Demand Situation in the Next Twenty Years

Bulk mineral resources of iron ores, copper ores, bauxite, lead ores, zinc ores and potassium salt play a pivotal role on the world＇s and China＇s economic development. This study analyzed and predicted their resources base and potential, development and utilization and their world＇s and China＇s supply and demand situation in the future 20 years. The supply and demand of these six bulk mineral products are generally balanced, with a slight surplus, which will guarantee the stability of the international mineral commodity market supply. The six mineral resources （especially iron ores and copper ores） are abundant and have a great potential, and their development and utilization scale will gradually increase. Till the end of 2014, the reserve- production ratio of iron, copper, bauxite, lead, zinc ores and potassium salt was 95 years, 42 years, 100 years, 17 years, 37 years and 170 years, respectively. Except lead ores, the other five types all have reserve-production ratio exceeding 20 years, indicative of a high resources guarantee degree. If the utilization of recycled metals is counted in, the supply of the world＇s six mineral products will exceed the demand in the future twenty years. In 2015-2035, the supply of iron ores, refined copper, primary aluminum, refined lead, zinc and potassium salt will exceed their demand by 0.4-0.7 billion tons （Gt）, 5.0-6.0 million tons （Mt）, 1.1-8.9 Mt, 1.0-2.0 Mt, 1.2-2.0 Mt and 4.8-5.6 Mt, respectively. It is predicted that there is no problem with the supply side of bulk mineral products such as iron ores, but local or structural shortage may occur because of geopolitics, monopoly control, resources nationalism and trade friction. Affected by China＇s compressed industrialized development model, the demand of iron ores （crude steel）, potassium salt, refined lead, refined copper, bauxite （primary aluminum） and zinc will gradually reach their peak in advance. The demand peak of iron ores （crude steel） will reach around 2015, 2016 for potassium salt, 2020 for refined lead, 2021 for bauxite （primary aluminum）, 2022 for refined copper and 2023 for zinc. China＇s demand for iron ores （crude steel）, bauxite （primary aluminum） and zinc in the future 20 years will decline among the world＇s demand, while that for refined copper, refined lead and potassium salt will slightly increase. The demand for bulk mineral products still remains high. In 2015-2035, China＇s accumulative demand for iron ores （crude steel） will be 20.313 Gt （13.429 Gt）, 0.304 Gt for refined copper, 2.466 Gt （0.616 Gt） of bauxite （primary aluminum）, 0.102 Gt of refined lead, 0.138 Gt of zinc and 0.157 Gt of potassium salt, and they account for the world＇s YOY （YOY） accumulative demand of 35.17%, 51.09%, 48.47%, 46.62%, 43.95% and 21.84%, respectively. This proportion is 49.40%, 102.52%, 87.44%, 105.65%, 93.62% and 106.49% of that in 2014, respectively. From the supply side of China＇s bulk mineral resources, it is forecasted that the accumulative supply of primary （mine） mineral products in 2015-2035 is 4.046 Gt of iron ores, 0.591 Gt of copper, 1.129 Gt of bauxite, 63.661 Mt of （mine） lead, 0.109 Gt of （mine） zinc and 0.128 Gt of potassium salt, which accounts for 8.82%, 13.92%, 26.67%, 47.09%, 33.04% and 15.56% of the world＇s predicted YOY production, respectively. With the rapid increase in the smelting capacity of iron and steel and alumina, the rate of capacity utilization for crude steel, refined copper, alumina, primary aluminum and refined lead in 2014 was 72.13%, 83.63%, 74.45%, 70.76% and 72.22%, respectively. During 2000-2014, the rate of capacity utilization for China＇s crude steel and refined copper showed a generally fluctuating decrease, which leads to an insufficient supply of primary mineral products. It is forecasted that the supply insufficiency of iron ores in 2015-2035 is 17.44 Gt, 0.245 Gt of copper in copper concentrates, 1.337 Gt of bauxite, 38.44 Mt of lead in lead concentrates and 29.19 Mt of zinc in zinc concentrates. China has gradually raised the utilization of recycled metals, which has mitigated the insufficient supply of primary metal products to some extent. It is forecasted that in 2015-2035 the accumulative utilization amount of steel scrap （iron ores） is 3.27 Gt （5.08 Gt）, 70.312 Mt of recycled copper, 0.2 Gt of recycled aluminum, 48 Mt of recycled lead and 7.7 Mt of recycled zinc. The analysis on the supply and demand situation of China＇s bulk mineral resources in 2015-2035 suggests that the supply-demand contradiction for these six types of mineral products will decrease, indicative of a generally declining external dependency. If the use of recycled metal amount is counted in, the external dependency of China＇s iron, copper, bauxite, lead, zinc and potassium salt will be 79%, 65%, 26%, 8%, 16% and 18% in 2014, respectively. It is predicted that this external dependency will decrease to 62%, 64%, 20%, -0.93%, 16% and 14% in 2020, respectively, showing an overall decreasing trend. We propose the following suggestions correspondingly. （1） The demand peak of China＇s crude steel and potassium salt will reach during 2015-2023 in succession. Mining transformation should be planned and deployed in advance to deal with the arrival of this demand peak. （2） The supply-demand contradiction of China＇s bulk mineral resources will mitigate in the future 20 years, and the external dependency will decrease accordingly. It is suggested to adjust the mineral resources management policies according to different minerals and regions, and regulate the exploration and development activities. （3） China should further establish and improve the forced mechanism of resolving the smelting overcapacity of steel, refined copper, primary aluminum, lead and zinc to really achieve the goal of ＂reducing excess production capacity＂. （4） In accordance with the national strategic deployment of ＂One Belt One Road＂, China should encourage the excess capacity of steel, copper, alumina and primary aluminum enterprises to transfer to those countries or areas with abundant resources, high energy matching degree and relatively excellent infrastructure. Based on the national conditions, mining condition and geopolitics of the resources countries, we will gradually build steel, copper, aluminum and lead-zinc smelting bases, and potash processing and production bases, which will promote the excess capacity to transfer to the overseas orderly. （5） It is proposed to strengthen the planning and management of renewable resources recycling and to construct industrial base of renewable metal recycling. （6） China should promote the comprehensive development and utilization of paragenetic and associated mineral species to further improve the comprehensive utilization of bulk mineral resources.

Excess heat capacity in glass-forming liquid systems containing molecules

Excess heat capacities at glass transition temperature in two types of glass-forming systems of [xNaNO3(1x)KNO3]60·[Ca(NO3)2]40(0x1) and Ca(NO3)2yH2O(4y13) are studied.In the former system,with the replacement of K + cation with Na + cation,the excess heat capacity is around 65.1 J mol-1·K-1,while the excess increases by 38.9 J mol-1·K-1 upon one molar H2O content in latter system.A quantitative description to the excess heat capacity is built up with the thermal effects of atomic and molecular translational motion in liquids.The results might offer a further understanding to the glass transition.

Measurements of the Heat Capacity of an Azeotropic Mixture of Water and n-Butanol from 78 to 320 K

Molar heat capacities of n-butanol and the azeotropic mixture in the binary system [water （x=0.716） plus n-butanol （x=0.284）] were measured with an adiabatic calorimeter in a temperature range from 78 to 320 K. The functions of the heat capacity with respect to thermodynamic temperature were estabhshed for the azeotropic mixture. A glass transition was observed at （111.9±1.2） K. The phase transitions took place at （179.26±0.77） and （269.69±0.14） K corresponding to the solid-hquid phase transitions of n-butanol and water, respectively. The phase-transition enthalpy and entropy of water were calculated. A thermodynamic function of excess molar heat capacity with respect to temperature was estabhshed, which took account of physical mixing, destructions of self-association and cross-association for n-butanol and water, respectively. The thermodynamic functions and the excess thermodynamic ones of the binary systems relative to 298.15 K were derived based on the relationships of the thermodynamic functions and the function of the measured heat capacity and the calculated excess heat capacity with respect to temperature.

Physicochemical principles of hydrogen metallurgy in blast furnace

Based on the stoichiometric method and the free energy minimization method,an ideal model for the reduction of iron oxides by carbon and hydrogen under blast furnace conditions was established,and the reduction efficiency and theoretical energy consumption of the all-carbon blast furnace and the hydrogen-rich blast furnace were compared.The results show that after the reduction reaction is completed at the bottom of the blast furnace,the gas produced by reduction at 1600℃still has a certain excessive reduction capacity,which is due to the hydrogen brought in by the hydrogen-rich blast as well as the excess carbon monoxide generated by the reaction of the coke and the oxygen brought in by the blast.During the process of the gas with excessive reduction capacity rising from the bottom of the blast furnace and gas reduction process,the excessive reduction capacity of the gas gradually decreases with the increase in the dydrogen content in the blast.In the all-carbon blast furnace,the excess gas reduction capacity is the strongest,and the total energy consumption per ton of iron reduction is the lowest.This shows that,for the current operation mode of the blast furnace,adding hydrogen in the blast furnace cannot reduce the consumption of carbon required for reduction per ton of iron,but rather increases the consumption of carbon.