I President inspected TISCO and Magang Group

On May 12, President Xi visited TISCO, learning transformation and upgrading of traditional manufacturing industry, enterprises’ anti-pandemic efforts and resumption. President Xi underlined products and technology are the lifeline of business, calling for more efforts in technological innovation to make a greater contribution to the development of advanced manufacturing.

On August 19, President Xi visited Magang Group of China Baowu Steel Croup. In a workshop, he learned about the company’s resumption of work, production and operations. The steel subsidiary should combine its own reform and development with the integrated development of the Yangtze River Delta and strive to develop itself amid the process, Xi added.

Steel industry is the fundamental industry of national economy. President Xi visited iron and steel enterprises twice during the year, and put forward new and higher requirements, which will further promote the high-quality development of the steel industry.

II China’s crude steel output hit a new high

According to National Bureau of Statistics, during January-November, China’s crude steel, pig iron and steel products totaled 961.16 million tons, 812.90 million tons, 1.20203 billion tons, up 5.5%, 4.2% and 7.0% year on year.

Daily average output of crude steel reached 2.869 million tons and the annualized output totaled 1.05 billion tons, breaking the threshold of 1 billion tons for the first time.

According to calculations, China’s crude steel supply totaled 946.34 million tons during January-November with the annualized supply of 1.03 billion tons.

Crude steel output and consumption hit the record new high, which will be the first country whose crude steel and consumption exceeded 1 billion tons.

III MIIT accelerates the revision of the Implementation Measures for Capacity Replacement in the Iron and Steel Industry

In order to continue to deepen the supply-side structural reform and promote the transformation and upgrading of the steel industry, since November 2019, the Ministry of Industry and Information Technology (MIIT) has launched the revision of Implementation Measures for Capacity Replacement in the Iron and Steel Industry in accordance with new requirements and situations (Ministry of Industry and Information Technology [2017] No. 337).

On January 23, 2020, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the Notice on Improving Steel Production Capacity Replacement and Project Filing Work. The announcement was suspended and new announcements were made, requiring all local governments to comprehensively sort out the steel production projects field since 2016 and carry out self-examination and self-correction.

In July, the General Office of the Ministry of Industry and Information Technology issued The Letter on Soliciting Opinions on the Implementation Measures for Capacity Replacement in the Iron and Steel Industry (Draft for Comment).

On December 16, 2020, MIIT issued the Implementation Measures for Capacity Replacement in the Iron and Steel Industry (Draft for Comment) to publicly solicit opinions from all walks of life. It is expected that the implementation measures will be officially introduced in early 2021.

IV Baowu Group leads to further consolidation of the steel sector

On August 21, 2020, Baowu group signed the agreement and took a controlling stake in Shanxi-based stainless steel giant Taiyuan Iron & Steel (Group) Co, also known as TISCO, in a move that would lead to further consolidation of the steel sector.

Besides, on March 31, 2020, Bayi Steel, Huabao Investment Company, Baowu Group jointly established Xinjiang Tianshan Steel, China Baowu Group crude steel output will exceed 100 milion tons, becoming the largest steel enterprises in the world.

V. Crude Steel production capacity of 620 million tons achieved ultra-low emission

China’s steel industry is implementing the most stringent pollutant emission standards in the history of world steel. Since Opinions on Promoting the Implementation of Ultra-Low Emissions in the Iron and Steel Industry was issued at the end of April 2019, the upgrading and transformation of ultra-low emissions in the iron and steel industry is progressing steadily.

As of November 27, 2020, a total of 229 companies whose production capacity is about 620 million tons across the country (165 companies in key areas, crude steel production capacity of about 520 million tons) have completed or are completing ultra-low emission transformations.

As of early December, six steel companies in China, including Shougang Qiangang, Taigang, Shougang Jingtang, Xingtai Delong, Shangang Rizhao Company, and Xinxing Ductile Pipe, have completed the ultra-low emission transformation and evaluation, and have been published on the official website of China Iron and Steel Association.

Related Link: SteelHome 2020 Summary: China's Top 10 Events in Steel Industry (II)