According to China's Ministry of Industry and Information Technology (MIIT), during the nation's 12th five-year plan period (2011-15) the Chinese domestic steel industry will adhere to the following general guidelines: steel products produced from domestic resources are to be mainly supplied to China's mid-west region; meanwhile, steel products produced from imported resources should be used mainly in the country's coastal regions; in addition, steel mills are to be gradually removed from cities.
At present, China's 10 largest steel producers contribute around 48 percent of the country's total steel production, with the MIIT stating that this share is still too small. According to the MIIT, by 2015 the aggregate steel production of the 10 largest steel producers should account for over 60 percent of total domestic steel output. In addition, China will attempt to promote the formation of three to five large steel groups which will be competitive internationally.
The MIIT also stated that in 2011-15 China will focus on the formation of two steel production bases in the southeastern coastal region, i.e., the Zhanjiang steel base in Guangdong Province and the Fangchenggang steel base in Guangxi Province. However, steel production will be curbed in the northern region of China, while more efforts are to be made to push forward the development of the steel industry in the western region.