Introduction: Li Zhongjuan, Deputy Inspector of the Industry Coordination Department of the National Development and Reform Commission, revealed that the "Plan for the Layout and Adjustment of Production Capacity in the Iron and Steel Industry" has recently been issued by the State Council. After the joint signing among various ministries, major projects related to the layout and adjustment of production capacity will be specifically implemented.
On May 9th, Zhang Xiangdong, a reporter from Economic Observer Network, revealed in Beijing that Li Zhongjuan, Deputy Inspector of the Industry Coordination Department of the National Development and Reform Commission, had recently obtained the issuance of the "Plan for the Layout and Adjustment of Production Capacity in the Steel Industry" by the State Council. After the joint signing among various ministries and commissions, major projects related to the layout and adjustment of production capacity will be specifically implemented.
This means that the planned relocation of urban steel mills and the construction of a new round of coastal and riverside steel bases will begin. With this policy, not only the highly anticipated Baosteel Zhanjiang project and the Wuhan Iron and Steel Fangchenggang project were officially approved; Moreover, some steel projects that have started construction or even put into operation without approval before may also take this opportunity to "become regular".
The "Plan for the Layout and Adjustment of Productivity in the Iron and Steel Industry" is one of the 18 key plans under the national "Twelfth Five Year Plan". The National Development and Reform Commission hopes to achieve industrial structure adjustment and optimization through layout adjustment, while solving the "Three Nos Syndrome" of imbalance, disharmony, and unsustainability 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 urban steel mills was 228 million tons, accounting for 39.5% of the total. After the release of the "Steel Industry Productivity Layout and Adjustment Plan", some urban steel mills will relocate according to specific conditions and standards.
It is worth noting that the relocation of steel mills and production layout adjustments are often accompanied by a new round of capacity expansion. For the already severely overcapacity steel industry, whether the implementation of the "Steel Industry Productivity Layout and Adjustment Plan" will bring about optimization of production layout or exacerbate overcapacity remains to be tested.
At present, some places 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, building the largest ship plate production base in the country at Hukou in Jiujiang, gradually forming 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, on the other hand, has been evaluated by relevant officials of the National Development and Reform Commission as "building a large-scale steel base is in line with national industrial policies, and has many favorable conditions such as a broad market and convenient transportation