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The new policy from China's Government for steel industry

The new policy from China's Government for steel industry
Issue Time:2016-12-02

2015 out of environmental protection capacity is below market expectations

January 2015, the new "Environmental Protection Act" to implement, through environmental protection means to eliminate clean production capacity is an important policy change. Nationwide, the elimination of capacity policy and the implementation of the new "Environmental Protection Law" is better Hebei Province, such as Tangshan City, starting from August to non-compliance of environmental protection steel enterprises to implement several times the punitive tariff. Hebei Province and Tangshan City, Hebei Province, a huge steel production capacity, Hebei Province, strictly abide by the policy to the production capacity and the new "Environmental Protection Law", the national steel production capacity is significant.


Government subsidies

Relevant agencies sample data show that from early July 2015 to 2015 December, at the end of the month, only Baotou Steel shares, Ling Steel shares, Chongqing Iron and Steel, Fushun Special Steel and so on. 8 Steel companies, totaling all kinds of government subsidies, subsidies and discount totaling 2.92 billion yuan. Of which Baotou Steel shares in just six months time, has 8 times to obtain financial subsidies, a total of 1.8 billion; Lingganggufen in December 25, 2015 access to government subsidies 792 million yuan in One-time.


"On the steel industry to resolve excess capacity to achieve the views of the development of poverty alleviation"

On February 4th, the State Council issued "Suggestion on the steel industry to resolve the excess capacity to achieve the meaning of development"(hereinafter referred to as" opinions ") published, clearly pointed out that the steel industry to resolve the excess capacity to achieve development off poverty, should focus on promoting the supply side of the steel industry structural reform. This is seen as China's steel industry "road map" to promote the industry get off the and upgrading in the next few years.

Environmental protection, energy consumption, quality, safety, technology, advice set up the five red lines, all have a substandard steel production capacity must exit. This is the first time the State Council explicitly delimit the scope of withdrawal.