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Hebei still has some problems to be solved in terms of capacity replacement and overcapacity

Jun. 22, 2018

According to the overall arrangement of iron and steel overcapacity, the second spotting team consisting of the Ministry of Industry and Information Technology, the Ministry of Environment and Environment, the Ministry of Finance, and the China Iron and Steel Association conducted a special spot check in Hebei Province in early June to eliminate excessive production capacity and prevent the re-emergence of “Grid Steel”. Spot check results show that there are still some problems to be solved in Hebei in terms of capacity replacement and dismantling of excess production capacity, and no re-emergence of “Gibbon Steel” has been found.


According to Xu Wenli, Director of the Iron and Steel Division of the Raw Materials Industry Division of the Ministry of Industry and Information Technology, the spot checks team visited four prefecture-level cities in Tangshan, Handan, Ganzhou and Xingtai, and 18 districts and counties, and conducted on-site inspections of 45 companies. The targets for the spot checks were mainly the companies that were reported, suspected companies discovered by satellites, production capacity replacement companies, some “Jinci Junction Small Steel Mills” companies and former “Grid Steel” companies.


This time, the spot-checking team verified a total of four capacity replacement projects: the newly-built cast-in-tube blast furnace project, the Yongyang Iron and Steel Project, the Hebei vertical and horizontal group Fengnan Iron and Steel Co., Ltd., the reorganization and relocation of the urban steel plant and the upgrade of Hegang, and Xuan Gang. Capacity transfer project. Among them, the Yongyang Iron and Steel Exchange Project, through the implementation of capacity replacement, completed and put into operation in October 2017 a 1,260 cubic meter blast furnace and a 120-ton converter. Some of the replacement capacity came from a 500 cubic meter blast furnace and a 50-ton converter in Yunfeng Metallurgy. The related equipment was seized by the court due to the assets and debt problems, and there was a problem that the replacement smelting equipment could not be removed.


At the same time, the spot check group also on-site verified that Yutian Zhengyi Industrial Co., Ltd. and Yanshan Iron & Steel Co., Ltd. resolved excess production capacity. Among them, Yanshan Iron & Steel Co., Ltd. has three 450 cubic meter blast furnaces and one 50-ton converter, and Yutian Zhengyi Industrial Co., Ltd. has a 40-ton capacity. Both the converter and a 45-ton converter have been included in the 2016 and 2017 capacity-removal plans. The inspections were found to be in a state of closure and no demolition was implemented. In some places, it is proposed to insist on all-day monitoring of non-dismantled equipment. However, this practice still fails to meet the relevant requirements of the country. It must establish a demolition schedule and remove it in time.


Luo Tiejun, Inspector of the Ministry of Industry and Information, said that Hebei Province is the largest steel producer in China and should unify its thinking to further improve its capacity-reduction efforts to prevent the recurrence of “Grid Steel”; from the perspective of national chess, from environmental capacity, cities Development and economic feasibility were considered in an integrated manner to further optimize the layout of the Hebei steel industry.


It is understood that with the consent of the State Council, the inter-ministerial joint meeting of the steel and coal industry to reduce excess production capacity and develop the difficulties will organize 8 spot checks from May 22 to June 15 to Tianjin, Hebei, Shanxi, Jilin, Hunan and Guangdong. 21 provinces (autonomous regions, municipalities directly under the Central Government) carried out iron and steel industry to dismantle excess production capacity and prevent spot inspections of steel bars from being re-ignited.


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