On May 9th, Li Zhongjuan, deputy inspector of the Industrial Harmony Department of the National Development and Reform Commission, leaked in Beijing that the "Consumption Power Planning and Adjustment Plan for the Steel Industry" had recently been issued by the State Council. After the Tianjin coding machine is jointly signed among various ministries, it will implement the relevant consumption power planning and adjustment serious items in detail.
This means that the planned relocation of urban steel mills and the establishment of a new round of coastal and riverside steel bases will begin. With this policy, not only has the highly anticipated Baosteel Zhanjiang project and the Wuhan Iron and Steel Fangchenggang project been officially approved; Moreover, some steel projects that have been established or even put into operation without approval before can also be "regularized" at this opportunity.
The "Consumption Power Planning and Adjustment Plan for the Steel Industry" is one of the 18 key plans of the national "Twelfth Five Year Plan". The National Development and Reform Commission hopes to achieve industrial structure adjustment and optimization through planning adjustment, while dealing with the "Three Nos Syndrome" of imbalance, disharmony, and discontinuity in China's steel industry.
According to the National Development and Reform Commission's survey, there are 20 steel mills located in provincial capitals and municipalities directly under the central government in China, and a total of 39 urban steel mills. In 2009, the total production capacity of 39 WNM450A wear-resistant plate factories in cities was 228 million tons, accounting for 39.5% of the total. After the release of the "Consumption Power Planning and Adjustment Plan for the Steel Industry", some urban steel mills will relocate according to detailed conditions and specifications.
It is worth noting that the relocation of WNM450A wear-resistant plate factory and the adjustment of consumption planning are often accompanied by a new round of capacity expansion. For the WNM450A wear-resistant plate industry, which already has serious overcapacity, the implementation of the "Steel Industry Consumption Planning and Adjustment Plan" will ultimately bring about optimization of consumption planning, or will it further exacerbate overcapacity, which remains to be tested.
At present, some central authorities have taken the opportunity to expand. During the 12th Five Year Plan period, Jiangxi Province plans to focus on implementing the "Urban Steel Plant Relocation Project" of Fangda Special Steel, establishing the largest ship plate consumption base in the country at Hukou in Jiujiang, gradually creating a new steel industry base of tens of millions of tons, and striving to achieve a steel production capacity along the Yangtze River accounting for more than 45% of the province's total production capacity. Huoqiu County in Anhui Province, due to its abundant iron ore reserves, has been evaluated by relevant officials of the National Development and Reform Commission as "establishing a large-scale steel base that is in line with national industrial policies, and has many favorable conditions such as a vast market and convenient transportation