In the first half of the solar industry, the capacity utilization rate is less than 60%

Development and Reform Commission website information shows that the first half of this year, China's industrial capacity utilization rate of 78%, is the lowest point since the fourth quarter of 2009. In response to the problem of excess capacity in some industries, Li Zhongjuan, deputy inspector of the Industrial Coordination Department of the National Development and Reform Commission, said that it is necessary to resolutely curb new capacity investment and strictly prohibit new capacity projects.
Li Zhongjuan said that a serious overcapacity will result in the waste of social resources, lower efficiency of allocation, and impede the upgrading of industrial structure. According to a survey conducted by the Bureau of Statistics, in the first half of this year, China’s industrial capacity utilization rate was 78%, which was the lowest since the fourth quarter of 2009. Of the 39 products, 21 had a capacity utilization rate of less than 75%, and photovoltaics, calcium carbide and other products were even less than 60%.
In this regard, Xue Shengwen, senior researcher at China Investment Consulting, explained that the low capacity utilization rate indicates that the maximum utility of the equipment has not been used and resources have been wasted. Too high may indicate the need for capacity expansion and prepare for later development.
He said that the figure of 78% reflects that our resources have not reached the optimal allocation. He believes that since the launch of 4 trillion yuan in 2008, most of the funds have flowed into heavy industries, causing a serious excess of industrial capacity, and the problem of overcapacity in steel, photovoltaic, calcium carbide and other fields is serious.

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