According to the National Bureau of statistics, due to lack of demand, prices fell, from 1 to March, coal mining and washing industry profits fell 41.2%, ferrous metal smelting and rolling processing industry decreased by 19.9%, non-ferrous metal mining industry decreased by 15.6%, non-ferrous metal smelting and rolling processing industry decreased by 13.6%, oil and gas extraction industry decreased by 6.3% 5, a decrease in total industry profit 39 billion 460 million yuan, down 17.7%.

According to media reports, a quarterly loss of large coal enterprises has been expanded to 44.4%. “Sell a ton of money less than six, even two bottles of drinks can not afford, and some companies even produced a loss of more than and 20 dollars per ton of coal, many companies have discontinued.”

From Fujian, mining machinery and equipment business in Inner Mongolia Baotou, Lin Hui said, with the mine shut down production, the mining equipment market two years getting smaller and smaller, earlier this year, he decided to leave the work for many years in Inner Mongolia.

This is mainly in the energy and chemical production provinces considerable impact. As the energy industry in Heilongjiang Province, the proportion of the energy industry is very high, but a quarter of the energy industry growth rate of the first negative growth of -2.2%. The added value of negative growth oil accounted for 50% of above scale industrial proportion about Daqing appeared over the years never had.

Reflected in the economic growth, a quarter of Heilongjiang GDP growth rate of only 4.1%, only 4.2% of Hebei Province, Shanxi coal is only 5.5%, the growth rate over the past more than and 10 years has lead the country in Inner Mongolia, the growth rate of only 7.3%, lower than the national average.

Hu Xiaodeng said that the current situation to make upstream downstream loss is not absolute. “Two or three years or 35 years may also be a reincarnation.” Under the laws of the market, the upstream energy and raw material prices fall, will lead to the withdrawal of part of the capital, reduce production in the future as demand stabilized, prices are likely to rise again.

He believes that the energy and chemical flagship of the province, in the upstream industry downturn, to adjust the industrial structure itself to a single energy based, full of its own industrial chain, strengthening the building part of the new pillar industries and main industries, restricting the breakthrough of traditional single resource-based industries.