It is reported from China Securities Journal on Wednesday that China Ministry of Industry and Information Technology (MIIT) is planning to modify the detail policies for eliminating obsolete and inefficient production capacity of the steel industry.
Unveiled on 20 March, the Plan for Reinvigorating the Steel Industry is a document to guide the adjustment of the industry structure and eliminate obsolete and inefficient production capacity, which stated clearly that high furnaces of 300 cubic meters and below, revolving furnaces and electric furnaces of 30 tons and below have to be eliminated by the end of 2010, and high furnaces of 400 cubic meters and below should be eliminated by the end of 2011.
However, Liu Yongchang, director of the Steel Department under the former Ministry of Metallurgical Industry, told China Securities that the enforcing standard of eliminating high furnaces of 400 cubic meters and below is unreasonable to plants that produce long steel products.
Earlier, Liu and three other department directors of the former Ministry of Metallurgical Industry have submitted suggestions to MIIT, stating that the elimination standards should be adjusted according to enterprises’ actual situations.
MIIT responded to the suggestion proactively, by setting specific research subject on that issue and conducting research in steel mills including large plants and small and midsize ones. The research was completed on 20 September, said an insider with MIIT.
The insider also told China Securities Journal that MIIT would guide enterprises to eliminate the inefficient production capacity in accordance with their own development situation, instead of enforcing the previous stiff standards.
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