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Hebei Province Resolves to Eliminate Iron Capacity of 17.26 Million Tons and Steel Capacity of 14.22 Million Tons This Year
On the 26th day this month, Hebei Province convoked the Steel and Coal De-capacity Mobilization Meeting, during which the provincial government signed a letter of responsibility with relevant cities, departments and enterprises as well as a letter of commitment to dispose iron capacity of 17.26 million tons and steel capacity of 14.22 million tons.
According to introduction, Hebei Province has ordered to dispose iron capacity of 10.77 million tons and steel capacity of 8.2 million tons as the first batch by the end of November and then the second batch by the end of the year. Tangshan City, Handan City, Qinhuangdao City and Langfang City should remove iron capacity of 15.92 million tons and steel capacity of 13.05 million tons in total throughout the year. Qinhuangdao City and Langfang City have assigned tasks to particular enterprises and equipment, and HeSteel Group has specified equipment for de-capacity.
Tangshan City indicated that it would not lose de-capacity confidence to the short-term rebound of market. According to information, Tangshan City will apply the approach of “Standard Restriction + Differentiated Policy + Elimination of the Worst” to precisely propel the removal of low-efficiency and ineffective capacity. It closely regulates enterprises that resume production after halting for more than half a year.
Currently, Handan City has sealed iron capacity of 1.18 million tons and monitors the sealed equipment 24h a day to prevent restart. Wu’an City, a city under its administration, has established a steel capacity trade platform and can evenly assign de-capacity tasks to enterprises according to their scales. It also pays “Steel Capacity Index Replacement Transaction Amount” with the standard of RMB 1 million per 10 thousands of tons of steel and iron. Enterprises with good performance pay transaction amount to preserve capacity. Enterprises with bad performance tear down their furnaces and receive subsidy. With the help of this platform, Wu’an City has accomplished the task of disposing iron capacity of 1.7 million tons and steel capacity of 2.77 million tons. (Reported by WANG Min, Xinhua News Agency, May 26)
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