The Ministry of Industry and Information Technology has designated the red line for the production and operation of the steel industry

On July 13th, the responsible person of the Ministry of Industry and Information Technology (MIIT) interpreted the "Code for the Production and Operation of the Steel Industry", saying that steel enterprises whose production scale is not up to standard conditions cannot expand production capacity through new construction or expansion projects to meet the scale requirements; Through the reorganization of large companies with comparative advantages in management, capital, technology, resources, etc., the conditions can be met. This means that the merger and reorganization of China's steel industry is expected to speed up.

The “conditions” stipulates the production scale of iron and steel enterprises: In 2009, the crude steel output of the Pu Steel Enterprise was 1 million tons or more, and the special steel company was 300,000 tons or more, and the ratio of alloy steel was greater than 60%. The regulations are more demanding and most SMEs may find it difficult to reach.

According to the person in charge of the Ministry of Industry and Information Technology, the actual occurrence of crude steel production in the year that has occurred but not the year 2010 and beyond is the standard, which is to prevent companies from simply pursuing scale expansion in order to meet the conditions, and thus increase the disorderly growth of steel production capacity.

All along, China's steel companies suffer from the paralysis of regional interests and it is difficult to carry out large-scale cross-regional restructuring. Some backward companies use the name of eliminating backward production capacity and expand production capacity through expansion and expansion projects in order not to be merged by the strong. According to statistics, in 2009, the five major steel groups such as Hebei Iron and Steel and Baosteel jointly produced 165 million tons of steel, which accounted for only 29% of the country's total steel output over the same period. This was in line with the “Top 5 Iron and Steel Enterprises in China” proposed by the Steel Industry Adjustment and Revitalization Plan. The proportion of production capacity in the national production capacity is over 45%. The target gap is still far. The steel industry's operation throughout the year is characterized by the “slow growth of large enterprises and the continuous increase in the number of small enterprises”.

To this end, in June this year, the 34th document of the State Development of the People's Republic of China put forward 16 specific opinions on accelerating the restructuring of the steel industry. Among them, Article 4 clearly requires the Ministry of Industry and Information Technology to take the lead to formulate the "Code for the Production and Operation of Steel Industry" to provide important basis for relevant departments and financial institutions to do a good job of promoting the merger and reorganization of iron and steel enterprises, eliminating backward production capacity and supporting the development of advantageous enterprises.

The relevant person in charge of the Ministry of Industry and Information Technology stated that the most important role of the "Conditions" is to carry out a standardized audit of the production and operation of the existing iron and steel enterprises and publish a list of qualified companies so that all management departments are well documented and regulate the production and operation of existing iron and steel enterprises. Orders, guiding the flow of iron ore, issuing construction steel production licenses, guiding credit, promoting the elimination of backwardness, and promoting mergers and reorganizations have played an active role.

According to the "Conditions", for enterprises that do not have the conditions for the time being, they will not engage in "one size fits all" and allow them to carry out rectification in accordance with the requirements of the standard conditions. For enterprises that meet the regulatory requirements, including those that meet the conditions after the rectification, the Ministry of Industry and Information Technology will organize a review and publish it in batches. List; For enterprises that do not meet the final requirements, all departments and related units will impose strict restrictions on construction steel production permit issuance, credit support, iron ore use and approval or filing projects, mine resources and land allocation.