Strictly prevent new capacity from becoming the primary problem of steel production capacity
Jul. 26, 2018
Luo Tiejun, inspector of the Raw Materials Division of the Ministry of Industry and Information Technology, said at the expansion meeting of the executive director of the China Iron and Steel Association on the 25th that with the improvement of the steel industry market situation, some regions and enterprises have invested in the steel industry driven by high profits. The willingness to increase and the impulse to expand capacity are obvious. Strict prevention of new capacity has become the primary problem facing steel production capacity.
According to the National Bureau of Statistics, in June, the average daily output of crude steel in China was 2.673 million tons. On the basis of new highs in April and May, the highest historical value was once again refreshed.
"In the special spot check conducted from May to June, we found that the failure to fulfill the capacity replacement procedures, the replacement ratio did not meet the requirements, the use of special-shaped furnace capacity to engage in digital games, the need to dismantle the equipment 'to stop the dismantling' and other typical problems." Tie Jun said that the steel industry and relevant departments in various places must strictly implement the newly revised capacity replacement method, so as to prevent the production capacity from “decreasing and increasing”.
He said that while resolutely implementing the task of de-capacity, China will continue to reduce the total steel production capacity in the Beijing-Tianjin-Hebei region. The area of Beijing-Tianjin-Hebei region accounts for only 2.2% of the country, but it concentrates about 25% of the country's steel output, far exceeding the regional steel consumption demand and environmental carrying capacity.
“In recent years, relevant regions have continuously increased environmental protection investment and fully implemented ultra-low emissions. However, due to excessive steel production, concentrated emissions still have a huge impact on the environment in the Beijing-Tianjin-Hebei region.” Luo Tiejun said, continue to reduce steel production capacity in the region. The total amount is the cure.
In response to the recent discussions of some industry experts triggered by the relocation of Hebei city steel mills, Luo Tiejun said that the iron and steel enterprises that are or are planning to relocate in the Beijing-Tianjin-Hebei region should compare the various methods such as shutting down the transition, transferring from the outside world, and transforming the development of electric furnace steel. Make decisions and prudently promote the relocation of urban steel mills. Avoid simplification of relocation in a short distance, avoiding the heavy burden of relocation and affecting the development of the enterprise, and even become a new "dead enterprise".