On August 23, China’s Ministry of Industry and Information Technology (MIIT) issued a notice regarding the halting of steel capacity replacement.
From August 23, all regions should suspend announcements of new steel capacity replacement programs. Those who continue to publicize and announce steel capacity replacement programs will be regarded as violating the law regarding the addition of steel production capacity and will be notified as negative examples.
“Since the implementation of the "Implementation Measures for Capacity Replacement in the Steel Industry" [June 2021], the steel industry has effectively promoted industry transformation and upgrading, structural adjustment, layout optimization and mergers and reorganizations through steel capacity replacement, but there are still problems such as inadequate policy implementation, imperfect supervision and implementation mechanisms, and incompatibility with industry development trends and needs,” the MIIT started.
The MIIT stated that it will work with the relevant parties to speed up the study and revision of steel capacity replacement methods and to further improve the related policies and measures. The MIIT said it will issue and implement the new methods after soliciting views and suggestions from the relevant parties.
The latest conditions for steel capacity replacement in China included a swap ratio for blast furnaces for areas that are susceptible to atmospheric pollution at 1.5:1, with that for other areas at 1.25:1, while the ratio for installation of new EAFs instead of old BOFs was at 1:1.
