www.mmi.gov.cn
HOME
　

Jiangsu demolished outdated iron and steel capacities of 3.262 million tons during the first half（2008/07/21）
According to the results of 2007 pollution and emission decreasing issued by Ministry of National Environment Protection, National Development and Reform Commission, Statistics Bureau and Ministry of Supervision, the emission of COD and SO2 in Jiangsu in 2007 decreased by 4.9% and 8.0% respectively from those of 2006, which means Jiangsu Province has overfulfiled the target set by center government for the second time in two years in line.
According to Zhu Tiejun, an official from provincial bureau for environment protection, the target for 2008 in Jiangsu is control the emission of SO2 under 1.1685 million tons, down 4.1% from that of 2007; that of COD under 862,100 tons, down 3.3%, which is hard to realize.
Take the first half for example, the emission of COD increased by 33,300 tons and that of SO2 increased by 53,900 tons. Therefore, it is hard to absorb the increases while realize the target for decreasing.
Therefore, the province takes a series of measures to secure the target, including the followings.
Adjust the production structure and demolish the outdated capacities. During the first half, Jiangsu Province closed and demolished outdated iron and steel capacities 3.262 million tons.
Stricter the standard for new projects. Till now, three development zones and two counties in Jiangsu Province has stopped giving approvals to new projects which will add new pollutions.

Second batch of export quotas of coke in general trade in 2008(2008/07/17)
Issuing authority: The Ministry of Commerce of China
Issuing document: Circular No 67, 2008
Issuing date: July 2008
The MOC issued the second batch of export quotas of coke in general trade in 2008 according to the Regulation of the People's Republic of China on the Administration of the Import and Export of Goods.
1. The quota is presented to enterprises meeting application requirements. The quota assignment is based on the export performance of each enterprise during 2005-07 and partly considered exports by producers in 2006 to reflect a preferential policy toward producers.
2. Related authorities in charge of business affairs are required to inform local enterprises of this circular, keep a close watch on export activities and let the MOC know the result of the program.

Table of the second batch of export quotas of coke in general trade in 2008

 

Serial number

Company

Quota (10,000 tons)

　

Total

          239

1

Sinochem Corporation

           22

2

China Sinosteel Corporation

           16

3

China Minmetals Corporation

           17

4

China Coal & Coking Co., Ltd.

           11

5

Shanxi Minmetals Industrial & Trading Co., Ltd.

            8

6

Shanxi Resources International Co., Ltd.

            7

7

China-Brazil (Shanxi) Trading Co., Ltd.

            6

8

Shanxi Dajin International (Group) Co., Ltd.

           11

9

Shanxi Tianli Enterprise Co., Ltd.

            6

10

Shanxi Zhongrui Trading Co., Ltd.

            4

11

Shanxi Yuanxiang Coking Co., Ltd.

            4

12

Shanxi Jinkang Imp & Exp Group Co., Ltd.

            4

13

China North Industries Co.

            4

14

CITIC International Co., Ltd.

            3

15

Beijing Zhongya Fuli International Trading Co., Ltd.

            4

16

Shanxi Antai International Trading Co., Ltd.

            4

17

Beijing Minmetals Liguo International Trading Co., Ltd.

            3

18

Baosteel Resources Co., Ltd.

            6

19

Shanxi Zhonglv Coking Co., Ltd.

            6

20

Xiaoyi Jinhui Coking Co., Ltd.

            7

21

Xiaoyi City Golden Rock Electric Coal-chemistry Co., Ltd.

           11

22

Shanxi Xinsheng Coking Group Co., Ltd.

            7

23

Shanxi Tongzhou Trading Co., Ltd.

           11

24

Shanxi Coking Co., Ltd.

            3

25

Qingdao Coking and Gas Co., Ltd.

            5

26

Shanxi Sanlian Zhengfeng International Trading Co., Ltd.

           13

27

Shanxi Coking Group International Trading Co., Ltd.

           11

28

Risun Holding Co., Ltd.

            7

29

Xiaoyi City Jinda Coking Co., Ltd.

            4

30

Shanxi Taixing Group Co., Ltd.

            5

31

Shanxi Maosheng Coking Group Co., Ltd.

            6

32

Xinjiang International Industry Co., Ltd.

            3

　

China continues to face tight coal supplies（2008/07/02）
The supply of coal used in power generation will continue to face a shortage, said an official with the China Electricity Council.

"The supply of coal, which fuels over two-thirds of China's power plants, is still tense nationwide, causing big pressure for the country's power plants as well as the total power supply in the country," said Xue Jing, director of the department of statistics and information under the China Electricity Council.

In Shandong province, local media reported that at present power plant reserves, which should usually have enough coal for at least 15 days of operation, only had reserves for 11 days.

As a kind of primary energy source, coal supplies will continue to face difficult times in the future, said Xue.

The relatively limited capacity of China's coal companies and transportation also caused the shortage, she said,

The summer, which is China's highest energy consumption period, will also bring about intense pressure on coal supplies, she said.

To ensure supplies, China sold less coal abroad in the first five months of the year, said the General Administration of Customs. Between January and May, China exported 18.5 million tons of coal, a decline of 4.1 percent from the same period last year.

But the export value rose 48.3 percent to $1.68 billion as the average price was up 54.68 percent to $90.8 per ton upon stronger demand worldwide.

Although the country announced it will raise the power tariff in July, this cannot totally offset power companies' losses mainly caused by rising coal price, said Xue.

"To power companies, this price hike can offset some 50 yuan increase in the coal price per ton, however, in some regions coal prices have increased by as much as 100 yuan per ton," she said.

The National Development and Reform Commission (NDRC) in July said electricity charges for commercial units would increase by 0.025 yuan per kWh from July 1.

But urban and rural residents and the farming and fertilizer production sectors were exempted from the increased electricity charges. Areas in Sichuan, Shaanxi and Gansu hit by the May 12 quake, too, have been exempted, the NDRC said.

The price of coal will be brought under government control temporarily, the NDRC said, because soaring coal price is the main factor behind higher electricity charges. (Source: China Daily)

Guangdong will compensate for stopped or closed iron and steel capacities（2008/06/17）
Yesterday, provincial government of Guangdong held a meeting for the outdated iron and steel capacities to be stopped, and the capacities to be closed due to the relocation of Guangzhou Iron and Steel. The Development and Reform Commission and Environment Protection Office of Guangdong Province signed Letter of Responsibility for Iron and Steel Capacities Closure due to the Relocation of Guanggang, and signed with concerned local governments Letter of Responsibility for Stopping and Washing Out Outdated Iron and Steel Capacities, including Shaoguan, Heyuan, Meizhou, Huizhou, Shanwei, and so on. The concerned capacities to be closed in the “11th Five-year” amounted to more than 10 million tons.
It is revealed on the meeting that the government will give the companies who loss capacities some economic compensation under condition, and the detail is planning.

China opposes US ruling on pipe dumping duties（2008/06/17）
The Ministry of Commerce (MOC) said that it firmly opposed to a recent final U.S. ruling on 29.57-615.92% of anti-dumping and anti-subsidy margins for standard steel pipes imported from China, noting that the use of the sanctions infringes U.S. rules and the tradition of not adopting anti-subsidy measures against non-market economies, which has been practiced since 1984.
What is more serious is the U.S. ruling that China distorted the domestic prices of hot-rolled sheet steel and subsidies were received by all pipe producers, ranging from state-owned to private makers.
It runs counter to the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures and has greatly hurt the interests of Chinese industry and is not acceptable to China.
China will continue to use legal means and WTO dispute settlement mechanisms to protect the legitimate rights and interests of domestic companies, the MOC added.

SFE ready for steel futures(2008/06/02)
The Shanghai Futures Exchange (SFE) was ready to launch steel futures while the studies on oil futures and copper option were also made a stage progress, the SFE director Wang Lihua unveiled at the 5th Shanghai Derivatives Market Forum.
He added transaction amount in the SFE has jumped to over 23 trillion yuan in 2007 from 6 trillion yuan in 2003. The exchange concluded over 9 trillion yuan during January to April of 2008, up 52% year-on-year with an account number of nearly 400,000.

Olympic won’t hit the iron and steel companies in Hebei Province
The rumor that all the iron and steel company around Beijing will be closed during the Olympic Games is not true, Wang Dayong, general secretary of Association of Metallurgy Industry in Hebei Province, said that during an interview. “As far as I know, the middle and small sized companies who has high pollution and energy consumption will be closed. But these 30 plus major companies with a capacity of more than 1.00 million tons per year will not be highly affected, as these company meet the national standards for pollution control,” he said.

China’s demand on shipbuilding steel to top 12 million tons
China’s demand on shipbuilding steel is expected to surpass 12 million tons in 2008, up 27.5% year-on-year, top 16 million tons in 2009, up 33.3% and over 18 million tons in 2010, according to a forecast by the China Association of the National Shipbuilding Industry (CANSI).
Chinese shipbuilding industry consumed a total of 9.41 million tons of shipbuilding steel for ship repair and building, block assembly and ocean engineering in 2007, 75% of which were used in the shipbuilding sector. Of the total consumption, flats were 5.91 million tons, sections were 680,000 tons and others were 520,000 tons compared to 4.64 million tons of flats, 560,000 tons of sections and 460,000 tons of others in 2006.
Three provinces and municipalities with shipbuilding steel consumption above one million tons last year were Shanghai (1.82 million tons), Jiangsu (1.75 million tons) and Liaoning (1.33 million tons). Zhejiang was also close to the one-million-ton mark with a consumption of 940,000 tons.
China will have a shipbuilding completion of up to 25 million dwt in 2008 and 40 million dwt in 2009. China’s consumption of steel in the shipbuilding sector is expected to be 9.3 million tons in 2008, 13.56 million tons in 2009 and 15.4 million tons in 2010.

Shanxi to compensate firms eliminating backward(08/05/28)
Shanxi province plans to pay over 30 million yuan to 15 local calcium carbide and ferroalloy enterprises for their efforts to eliminate outdated capacity.
According to industry policy, the province must shut down ferroalloy ore furnaces below 5,000-6,300 kva, silicon, calcium furnaces and silicon, calcium, barium and aluminum furnaces below 1,500 kva by the end of 2008, eliminate calcium carbide furnaces with a unit volume between 5,000-12,500 kva and open calcium carbide furnaces, ferroalloy ore furnaces of 6,300 kva, calcium carbide furnaces and silicon, calcium, barium and aluminum furnaces below 5,000 kva by the end of 2010.
The related authorities should draft a 3-year program to scrap backward in a bid to improve structural adjustment and industrial level.
The governments should phase out substandard producers year by year by taking compulsory measures such as cutting off water, electricity and gas supplies, stopping transportation, loans and licenses while encourage related enterprises to retreat from the market in advance by policies including raising entry threshold, differential electricity fee and “the earlier one leaves the more he rewards”.

China unlikely to intervene in domestic steel prices（2008/05/26）
Steel prices in China should be decided by the market, with no government interventions, Xiong Bilin, Industrial Department deputy director of the National Development and Reform Commission (NDRC), said on Thursday.
Xiong said these were his own personal opinions while commenting on Baosteel Group's delayed release of its price adjustments in the coming quarter, which had been scheduled for May 20.
Surging prices of imported iron ore would push up the costs of domestic steel makers by 400 to 600 yuan (57 U.S. dollars) per tonne, said Xiong.
The overall cost would rise by about 1,000 yuan per tonne, taking into account increased coke prices, shipment and energy charges, said Xiong.
The steel makers might want to pass on the cost rises to downstream enterprises, depending on what downstream players could afford, he said.
"Among them, the electric appliance manufacturers could be weaker in taking on upstream price increases. The high steel prices will go down if they were unacceptable to downstream companies," said Xiong.
Baosteel Group might also be contemplating the affects of the 8.0-magnitude earthquake that hit southwest China last week, said Hu Yanping, an analyst with Umetal.com. Reconstruction work would require large amounts of steel.
But given the high domestic prices already pressing upon downstream companies, market concern is that the government might raise export taxes to guarantee domestic supply, Hu said.

China ports iron ore stocks at record 79.22 mln tonnes（2008/05/22）
Imported iron ore stockpiles at Chinese ports reached a record 79.22 million tonnes as of May 15, and the figures are likely to increase further, China's National Development and Reform Commission said.
The commission, the country's top planning body, held a meeting on Friday to discuss how to lower iron ore port stocks, it said in a statement posted on its website, www.ndrc.gov.cn, on Tuesday.
It said the massive inflows of iron ore had caused overstocking and severe congestion in ports in northern China, including Qingdao, Rizhao, Tianjin and Lianyungang.
Lowering iron ore port stocks may help reduce domestic prices for iron ore and strengthen the country's bargaining position in talks over 2008 term prices with Australian miners.
Though Brazilian miner Vale, the world's top iron ore producer, has already agreed on a 2008 price hike of 65-72 percent, talks with Australian miners BHP Billiton Ltd/Plc and Rio Tinto are in a deadlock.
The Australian miners have demanded freight premiums to make up for the difference in transport costs, which at present stand at as much as $60 a tonne.
Severe port congestion in China, due to the large port iron ore stocks, has also helped push up freight rates for dry bulk cagoes to new records. The benchmark Baltic Dry Index hit a fresh high of 11,793 overnight. (Source: Shanghai Daily)

Hebei raises power costs for outdated capacities to hasten the washing out of outdated iron and steel capacities（2008/05/20）
According to the news from National Development and Reform Commission, Price Bureau and Development and Reform Commission in Hebei Province released a notice, which said that the power prices for operators of outdated iron and steel equipment, in order to force them out of market as soon as possible.
According to the notice, the price for outdated equipments will be 0.3 Yuan per kwh higher than the normal, and 0.1 Yuan higher than that the national standard since 1st May, and 0.4 Yuan per kwh higher since 1st Jan 2009. Meanwhile, the provincial government will check the results of the price hike, and will not allow any adjust to the prices standards. Those who should be charged with higher power prices but haven’t will be picked out, and pay that fee in a limit period.
According to the responsibility documents signed with NMDC, 5.69 million tons of iron making capacity and 8.13 million tons of steel making capacity in Hebei Province will be stopped by the end of 2010. Raising the price differential of power for outdated equipments will help hasten the closure of these capacities, and encourage the industry integration.

Iron and steel plants 200 km around Beijing will be closed（2008/05/19）
On 13th May, 87 days countdown to the 29th Olympic Games, the close of high pollution and high energy consuming companies, including iron and steel companies in Hebei Province began countdown. According to industry sources, now the concerned departments of the government have made plans to secure a higher air quality during the Games in Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Shandong, and that for Beijing, Tianjin and Hebei will be more specified.
the condition
Zhao Hong, director of production in Tangshan Jianlong, confirmed the news. “42 companies of iron and steel, cement and glass and other industries will be closed,” He said.
With the largest iron and steel output, Hebei Province committed to securing a higher air quality during the Games earlier. In a notice issued on 1st April, industry office of Development and Reform Commission in Hebei Province said that 42 companies in Shijiazhuang, Chengde, Zhangjiakou, Qinhuangdao, Tangshan, Langfang and Baoding will be permanent stopped or demolished or temporary closed during the Games.
As to Tangshan, six iron and steel companies will be closed, including Tangshan Stainless Steel Company Ltd, Tangshan Xingye Gongmao Company Ltd, Tangshan Hangu Iron and Steel Company Ltd, Tangshan Lugang Iron and Steel Company, Tangshan Ruifeng Iron and Steel (Group) Company Ltd and Tangshan Jianlong.
Till now, there is no public clearance on the company lists to be closed and specific standards. According to small and middle size iron and steel companies, the related departments may control the pollutions from iron and steel companies by cutting or limiting the supply of electricity and water.
Dong Xiangzhu, General Manager of Tangshan Fenggang Iron and Steel, said, “It is said that all the iron and steel companies 200 km around Beijing is likely to be closed, but there is no written decisions till now. Small blast furnaces with an inner capacity of 200 cube meters below have been all shut down.”
200 m3 and below blast furnaces is to be demolished according to the national industry policy, therefore it is no surprise to see them shut down. But, the deadline of these furnaces was pushed back by two years, from the end of 2007 to the end of 2009. As a result, closing these blast furnaces may be due to the Games.
Opportunity for integration
Shougang, a major producer in China, will also be affected. Shougang have promised to cut output by 480,000 tons per month during the Games, to 200,000 tons per month.
But, relatively, the major iron and steel companies will have a lighter affection. An industry source said, “Closing a capacity of iron and steel melting of 4.00 million tons per year is in accord with the relocation project, not all due to the Games. And the hot strips facilities and other main equipments of Shougang have been moved to Caofeidian.” CISA said that the declines in output would not affect the supply and demand relation.
According to the statistics, the pig iron output during the Games will decrease by 1.98 million tons per month (Shougang and the six companies in Tangshan), amounting to 19% of the whole in Hebei, Beijing and Tianjin, and 5% of that in China. Adding the other small and middle sized companies, the decline in pig iron output will amount to 3.88 million tons per month, taking up 37% of that in Beijing, Tianjin and Hebei, and 10% of that in China.
Analysts points out, traders may take chances to increase the prices for iron and steel products. Now the price for hot rolled sheet and coil in Tianjin has risen to 5,750 Yuan per tons, and that in Beijing to 5,800 Yuan to 5,820 Yuan, and the prices in North all exceed those in East.
According to industry sources, taking the opportunities of output decline during the Games, China may boost the industry adjustment in North, by demolishing high pollution and high energy consuming companies and integration among companies.
Now the total production of major companies in North takes 45% to 50% of the whole in China, and the ratio may be lifted to 70% if integrated those small plants.

Beijing National Stadium and New CCTV Center use “Jinxi” H-Section steel（2008/05/13）
Till 5th May 2008, Jinxi Iron and Steel’s large H-section steel production line has been operational two years. During the past two years, H-section steel from Jinxi Iron and Steel has been used in many large projects both in domestic and abroad, especially the utilization in Beijing National Stadium, also known as “Bird’s Nest”, the main track and field stadium for the 2008 Summer Olympics, and the new center of CCTV, which gives the company an opportunity to increase the fame of this product.
Since launching operation, the “Jinxi” H-section has won ISO9001-2000 quality Attestation and European Quality Standard EC Attestation, and also the titles like first brand in H-section market of China, and the first choose of customers from domestic. This product has been sold to 15 countries and areas, and been utilized in many key projects, “Bird’s Nest” and including the new center of CCTV.

MOC issues supplementary list of coke, rare earth exporters for 2008（2008/05/12）
Issuing Authority: The Ministry of Commerce of the People’s Republic of China
Issuing Number: Circular No 38 2008
Issuing Date: May 5, 2008

The Ministry of Commerce (MOC) published a supplementary name list of coke and rare earth exporters for 2008 in accordance with the Application Conditions and Procedures of Export Quotas of Coke in 2008 (MOC Circular No 92 2007) and the Application Conditions and Procedures of Export Quotas of Rare Earth in 2008 (MOC Circular No 93 2006) as follows:

The supplementary list of coke exporters for 2008
1. Qingdao Coking Gas Co Ltd
The supplementary list of rare earth exporters for 2008
1. Changshu Shengchang Rare Earth Smeltery, Jiangsu Province



                                           The Ministry of Commerce of the People’s Republic of China
                                                                 May 5, 2008

Steel prices continue to warm up in May（2008/05/07）
Most mills across the country began a new round of price hikes from early May, with a rise ranging from 50-450 yuan per ton. The high end came from Shagang, who raised rebar price by 450 yuan per ton to 5,470 yuan per ton starting from May 1st.
Besides, Wisco has announced to lift wire rod prices by 300-400 yuan per ton in June while Liuzhou Steel has raised prices on some products by 100 yuan per ton. Selling prices have also been rising all the way with the hike of raw material prices. CISA’s 72 members achieved a profit of 44.057 billion yuan in the first quarter, up 26.47% year-on-year.

Kaifeng City will deal with local ferroalloy, calcium carbide and corundum companies（2008/04/30）
According to Environment Protection Office in Kaifeng City, the government there plans to deal with those companies in ferroalloy, calcium carbide and corundum industries that have a great pollution. Now the local government is checking all the companies of these industries and setting specified measures, targets and deadlines for each company who has been polluting the environment, basing on the Technology Standards of Pollution Control for Companies in Ferroalloy, Calcium Carbide and Corundum Industries in Henan Province. These projects without environment approval will be stopped till they get licenses, and be punished according to associated laws and rules. To those projects that are forbidden by national government, they will be demolished in a certain time. To those projects, which are in accord with the national policies and have got environment protection licenses, but fail to meet the requirement for total amount control of pollutions, they will be ordered to be corrected in a limited time period.

Industry department of NDRC studied Guangxi Fangchenggang Iron and Steel base（2008/04/25）
Leading by Xiong Bilin, vice director of industry department of NDRC (National Development and Reform Commission), a group from NRDC went to Guangxi Zhuang Autonomous Region and had a check of the preparation work of Fangchenggang Iron and Steel Base Project there, focusing on the port and the iron and steel base construction and the relocation of local residents.
The iron and steel base project is the largest investment project in Guangxi so far. The project is scheduled to break ground in Dec 2008, the 50th anniversary ceremony of Guangxi Zhuang Auto Region, and be completed in three years.
April 7th to 8th, Wugang, the major investor, invited several professors in iron and steel industry to give consultation, and set the target of construct the project a resources-saving, environment-friendly and clean project, with the resources fully used and less emission. The project will be a coastal iron and steel base in China leading the trend of iron and steel technology.

Beijing’s investment in heavy energy consuming sectors plunged（2008/04/23）
Beijing’s investment in chemical industry, cement and steel sectors reduced by 45.9%, 53.3% and 76.9% year-on-year respectively during the first quarter of 2008, according to information released by the Statistics Bureau of Beijing Municipality and the State Statistics Bureau. However, the slowdown in the investment would only put a limited influence on the growth of the city’s economy. Beijing government has made a big adjustment in the industrial structures, especially in some heavy polluting, heavy energy consumption and resources-intensive sectors, including cement, steel and petrochemical. For example, Shougang has already moved its main plants in the city to Hebei province and will largely reduce production of steel and pig iron this year.

Zhanjiang steel project starts sea-area using examination（2008/04/16）
Approved by the National Development and Reform Commission, the State Oceanic Administration held an examination meeting on the use of sea-area for Zhanjiang steel project at Zhanjiang city between 11 and 12 April.
The eastern island of Zhanjiang, still in an undeveloped state, boasts a unique deepwater port capable of berthing 300,000 dwt ore carrier and has potentials to build an ore dock with an annual treatment of 40 million tons.
Guangdong province’s steel consumption reached 40 million tons in 2007 and is expected to top 48 million tons in 2010.

NDRC: Steel prices continue to rise in March（2008/04/14）
A monitoring survey on the main steel markets in 30 provinces, autonomous regions and cities throughout China showed steel prices continued to rise in March with an average composite price of 5,572 yuan per ton for the main steel products, up 9.37% month-on-month and 36.1% year-on-year.
The average transaction price was 5,022 yuan per ton for construction steel, up 8.57% and 50.28% respectively, those of rebars (12, Q235 and 28, Q235) were 5,120 yuan and 5,061 yuan and ordinary wire rods（6.5, Q235 and 8, Q235）4,963 yuan and 4,964 yuan per ton.
That of flats was 6,116 yuan, up 9.06% and 25.65%; medium plates（10, Q235 and 40, Q235）5,701 yuan and 5,882 yuan; hot rolled sheets（1.5, Q235A and 2, Q235A）5,894 yuan and 5,770 yuan; cold rolled sheets（1.0, Q195-Q235 and 1.2, Q195-Q235）6,377 yuan and 6,409 yuan; galvanized sheet (0.75, 200g) 6,655 yuan; stainless steel （1.2×1000×2000）31,929 yuan; tube 6,181 yuan, up 7.89% and 26.16%; galvanized pipe（25, Q235BF）6,122 yuan; seamless pipe （108×4.5,20#）6,351 yuan; sections 5,072 yuan, up 11.15% and 50.04%; round bar（16mm, Q235）5,091 yuan, up 8.79% and 50.08%; angle steel 5,043 yuan, up 12.45% and 51.59%; I-beam (25, Q235) 5,082 yuan and channel steel 5,031 yuan.
The prices are expected to rise modestly later for the following three reasons:
1. Construction projects will be in full swing, bringing a strong demand on mill products.
2. The rising prices of domestic iron ore, ferrous scrap and coke will boost production costs.
3. Due to higher raw materials prices in the international market, buoyant demand and a depreciating US dollar.

Inner Mongolia will continue washing out the outdated ferrous and non ferrous metal capacities（2008/04/09）
As a key production base of iron and steel and non ferrous metals in China, to meet the requirements for energy saving and emission reduction, Inner Mongolia Autonomous Region will continue washing out the outdated ferrous and non ferrous metal capacities in 2008, and implement stricter standards for new comers in this field.
Basing on the rich mineral resources, the metallurgy industry in Inner Mongolia has a quick growth in recent years. In 2007, Inner Mongolia had a steel output of 10.40 million tons, and 1.35 million tons of ten non ferrous metals, increasing by 20.8% and 52.2% from those of 2006. among the ten metals, electrolysis aluminum accounted 1.02 million tons, up by 25.7% from a year ago.
According to Ya Saning, director of Economy Commission of Inner Mongolia Autonomous Region, to improve the structure of metallurgy industry, lift the industry level, Inner Mongolia intends to demolish blast furnaces with an inner capacity of 300 cube meter and below, realizing the target of decreasing outdated capacities of iron and steel by 5.463 million tons by 2009. In 2007, Inner Mongolia closed 91 small iron and steel companies and demolished a capacity of 3.693 million tons.
Meanwhile, the government will decrease the non ferrous metal capacity by 40,000 tons in 2008.
Besides, Inner Mongolia will stricter the standards for new comers and new projects, while focus on special steel, stainless steel and re-processing industry chain, and lift the ratio of special steel and high quality steel to more than 65% in 4 years. As to the projects for non ferrous metals, new electrolysis aluminum project must gain approval from concerned departments of State Council. And the process, energy consumption and environment protection have to meet the national policies.

China’s huge appetite for auto steel expected（2008/04/08）
Yaojie, vice secretary general of the China Association of Automobile Manufacturers predicted that China’s demand on auto steel would be 13.71 million tons in 2008, 15.1 million tons in 2009, 16.37 million tons in 2010, 21.76 million tons in 2015 and 27.67 million tons in 2020, double the level of 2008.
Yao said a car in structure is composed by 50-60% of steel and 12-15% of cast iron. In 2008, China’s auto output is expected to reach 10 million units, up 12.61% year-on-year. Of the total output, passenger car will account for 7.3 million units, up 14.42% and commercial vehicle make up 2.7 million units, up 8%.

The import prices for iron ore in Feb in Jiangsu reached new records（2008/04/08）
According to the statistics from Nanjing customs, from Jan to Feb 2008, Jiangsu imported iron ores of 5.737 million tons, with a value of 870 million US dollars in total, increasing 22.8% and 1.4 times from the same period in 2007. And the unit price averaged US $151.5 per ton, up by 96.3%. The reasons for the hikes in import prices for iron ores include: first, the high monopoly in iron ore supply side, and the weakness of domestic steel makers in ores pricing; second, the continuous rising ocean freight; third, the quickly rising demand in international market; fourth, the tight supply and demand relation in China.

First homegrown stainless continuous casting machine debuts（2008/04/07）
The first self-made 220×1,600mm stainless arc-shape slab continuous casting machine has produced the first tap of billet at Taishan Iron and Steel Group. The 20th China Metallurgical Construction Corporation of MCC, as the project contractor, took seven months to install over 2,400 tons of equipment, almost 90 tons of pipes and lay around 35 kilometers of cable since the project broke ground on September 8, 2007.

China sees slowdown in steel output growth during Jan-Feb（2008/04/01）
The National Development and Reform Commission said on its website that China’s steel output continued to rise during January and February of 2008, but the growth rate has eased while steel prices continued to rise.
China produced 79.45 million tons of crude steel in the first two months, up 6.4% year-on-year, with the growth rate down 16.7 percentage points and 89.05 million tons of steel products, up 12.3% with the growth rate down 13.1 percentage points. The country exported 7.25 million tons of steel products, down 17.2%, imported 2.67 million tons of steel products, down 0.9% and 75 million tons of iron ore sand, up 16.2%.
Domestic composite steel price index was 135.17 points in late February, up 9.03 points and 10.05 points from late and early January respectively, and up 25.55 points year-on-year. The average prices of 6.5mm steel bar, 10mm medium plate and 0.5mm cold rolled sheet were 4,810 yuan per ton, 5,694 yuan per ton and 6,412 yuan per ton respectively, up 6.2%, 9.3% and 11.3% from early January and up 47.9%, 33.8% and 17.3% year-on-year.
The metallurgy industry achieved profits of 39.2 billion yuan in the first two months, up 38.6%.

Guangdong to eliminate 4.65 million tons of outdated capacity（2008/03/28）
Vice director of the Environmental Protection Bureau of Guangdong Province said the emissions of sulfur dioxide (SO2) and chemical oxygen demand (COD) in 2007 were cut by 5.05% and 3.02% year-on-year respectively despite a growth of 14.5% in the province’s gross economy.
The province has pledged to further cut SO2 and COD emissions by 4% and 3.5% in 2008, start construction of all sewage treatment plants in 31 counties by the end of this year, eliminate 4.65 million tons of outdated capacity, 3.85 million kw of small thermal power stations and 10 million tons of cement capacity.

Shandong demolished steel melting capacity of 3.70 million tons in 2007（2008/03/24）
According to Economy and Trade Commission of Shandong Province, the province closed and washed out 2.48 million tons of iron melting capacities and 3.706 million tons of steel melting capacities in 2007, fulfilling the targets set by national government for 2007. Meanwhile, the more than 14,000 employees involved have been reallocated.
According to the responsibility documents signed between NDRC (National Development and Reform Commission) and Shandong Province Government, the first capacities to be demolished belonged to 17 companies, totaling 4.90 million tons of iron melting capacity and 7.91 million tons of steel melting capacity.
Till now, there still 15% of iron melting and 6% of steel melting capacities remain, which are listed as the outdated capacities to be washed out. Therefore, the further structure adjustment of iron and steel industry is even harder, as the industry is in dispersion, and the targets for energy saving and emission decreasing is heavy, said Wang Wanliang, head officer of Economic Operation Bureau of Economy and Trade Commission.

Steel base projects in Fangcheng and Zhanjiang approved（2008/03/24）
The National Development and Reform Commission (NDRC) formally approved two steel base projects in Fangcheng port, Guangxi Zhuang autonomous region and Zhanjiang, Guangdong province on March 17, 2008. The former will be jointly developed by Liuzhou Steel, Guangxi and Wuhan Steel (Wisco) and the latter by Baosteel, Shaoguan Steel and Guangzhou Steel.
According to the NDRC, Guangxi and Wisco will have to eliminate 5.41 million tons of pig iron capacity and 9.1 million tons of steel capacity and realize consolidation between the two through building the steel project in Fangcheng port. As to acquisition of Shaoguan Steel and Guangzhou Steel by Baosteel, a new company, controlled by Baosteel Co, will be established in Guangzhou. Guangzhou Steel will have to eliminate all pig iron, steel making and rolling capacity while Shaoguan Steel conduct technical reform by scraping outdated blast furnaces and small converters. Taking advantage of the Zhanjiang project, Guangdong has to eliminate 10 million tons of outdated steel capacity.

Gansu checks the results of the plans for energy saving and emission decreasing by 14 companies（2008/03/21）
According to Economy Commission of Gansu Province, to secure the targets having been put into practice and further boost the plan of 2008 for energy saving and emission decreasing, Gansu decides to check the results of the 2007 plans for energy saving and emission decreasing by 14 companies, who are under close monitoring, and also the involved offices, and these who didn’t complete the plan will be punished.
In 2007, Gansu Province set 40 targets of ten aspects, in order to “cool the growth of high energy consuming and high pollution industries, demolish the outdated capacities, and implement the key projects for energy saving and emission decreasing”, and the government break the targets down to concerned local offices that are directly under the authority of provincial government and key companies in industries like oil chemical, nonferrous metal, metallurgy and construction materials and so on.

Shandong encourages enterprises to explore mineral resources around the world（2008/03/12）
Shandong provincial government has announced to encourage local enterprises to explore 10 resources including iron ore, copper ore, bauxite ore, lead-zinc ore, sylvite ore, gold, rare earth metals, coal, timber and natural rubber around the world. The province hopes to import over 30% of resources produced by overseas mineral mines with Shandong enterprises as their shareholders.
Until now, the province has invested $400 million on overseas mineral market covering non-ferrous metal, forest utilization and timber processing. By 2010, the investment in overseas market will increase by 30% annually.

Fangchenggang Iron and Steel Base Project to break ground（2008/03/06）
On 29th Feb, Fangchenggang City and Wuhan Iron and Steel (Group) Company signed a MOU on starting construction of the Fangchenggang iron and steel base project.
From 26th to 28th Feb, representatives from Fangchenggang City visited Wuhan Iron and Steel (Group) Company, and had a talk with the managers of the company. Both parties agreed on boosting the iron and steel base project in Fangchenggang.
Hu Wangming, vice general manager from Wuhan Iron and Steel (Group) Company, said: “Fangchenggang project is in accord with national industry policy, and has advantages in location, resources and transport. The project should be realized as soon, and our company will develop the project a high grade and high quality iron and steel production base, contributing to the development of Fangchenggang City.”

Inner Mongolia plans to demolish ferroalloy capacity of 600,000 tons in 2008（2008/03/04）
According to Economic Council of Inner Mongolia Autonomous Region, while implementing the policy of quota production for ferro alloy and calcium carbide industries, Inner Mongolia Autonomous Region plans to expand much more outdated capacities in these industries.
Basing on the rich resources like coal, silica and iron and so on, Inner Mongolia has become an important production and export base of ferro alloy and calcium carbide and so on since 2000. But these industries have high energy consumption and high pollution, with a ton of calcium carbide consuming 3,000 KWH of electricity, and a ton of ferro alloy consuming several thousand KWH of electricity, while pulls out a lot of waste gas and dusts, having a big effect on the environment.
Therefore, the Inner Mongolia government took measures to limit the output of calcium carbide to 5.00 million tons and that of ferro alloy to 3.00 million tons in 2007. The company who used up the quota will be cut off electricity supply, and no quota to these higher energy consuming and pollution companies. Meanwhile, fifty-seven ferro alloy producers and five calcium carbide producers were forced to stop production in 2007, with the demolished capacities totaled 270,000 tons and 100,000 tons respectively.
To boost the energy saving and emission decreasing, Inner Mongolia Autonomous Region plans to demolish 1.00 million tons of ferro alloy capacity and 2.00 million tons of calcium carbide capacity during the “11th Five” period, up from 600,000 tons and 1.20 million tons. In 2008, local government targets at demolishing capacities of ferro alloy and calcium 600,000 tons and 200,000 tons respectively in 2008.

China’s crude steel output revises to 489.66 million tons in 2007（2008/03/03）
China produced 489.66 million tons of crude steel in 2007, up 16.8% year-on-year and 568.944 million tons of steel products, up 21.3%, according to the Statistical Communique for National Economic and Social Development in 2007. Both figures were 419,200 tons and 4.3359 million tons above those in a latest report.

Shaanxi held a meeting for closing and washing out the outdated iron and steel capacities（2008/03/03）
On 27th Feb, Shaanxi Provincial Government held a work meeting to make a schedule of closing and demolishing the outdated iron and steel capacities in Shaanxi Province. Weinan, Hanzhong, Baoji, Tongchuan, Yan’an and Shangluo six cities and Longgang Group signed responsibility documents for closing and demolishing the outdated iron and steel capacities.
Zhao Zhengyong, standing vice nomarch of Shaanxi Province, said: “Now Shaanxi is in a period of quick development, and also in a critical period of boosting the plan of energy saving and emission decreasing. Shaanxi Province has promised to demolish 2.98 million tons of outdated iron melting capacities from 2007 to 2010, and 880,000 tons of outdated steel melting capacities, which will save 1.25 million tons of standard coal and 2.49 million tons of water, and decrease emission of sulfur dioxide by 9,961 tons each year. Therefore, the government will take measures to deal with the outdated capacities listed, and ask cooperation from other departments like commercial and merchant office and so on. Meanwhile, Shaanxi will adopt a more detailed electricity prices to show the policy for the steelmaker, encourage, restrict or others. To the new projects, basing on the industry policy of the country, and the rules on land using and environment protection and so on, Shaanxi will take a stricter evaluation procedure of the iron and steel projects under and to launch construction. Besides, Shaanxi will boost the technology improving in companies and strengthen the resource utilizing and environment protection.”
“Local government should take responsibility and make detailed plans for closing and demolishing small sized blast furnaces, converters and electrical furnaces in the district, and sign responsibility agreements with concerned companies, and make clear the targets and the capacities on the list.” He added.

Steel takes the largest share in Shanxi export market instead of coke（2008/02/27）
According to the data from Shanxi Province, in 2007, 19 products from Shanxi Province have an export value of more than 100 million US dollars, increasing from 9 in 2006, and 3 in 2002. Among them, steel is the single product with highest export value.
According to the statistics, Shanxi had an export value of more than 10.0 billion US Dollars for the first time in 2007, to 11.58 billion US dollars, up 74.59% from that of 2006. And the destinations covered 174 countries and areas, up by 38 from that of 2002, with 50 involving a value more than US $10 million. USA, Japan and South Korea took the first three positions.
Meanwhile, Shanxi Province is changing from a resource supplier to a industrial products production base.

CISA’s basic views on international iron ore prices negotiations for 2008（2008/02/26）
CISA president: Zhang Xiaogang
1. The China Iron and Steel Association (CISA) and Chinese steel producers recognized and respected the results of international iron ore prices negotiations for 2008 settled between Baosteel and CVRD. The results complied with international iron ore trade rules and international convention.
2. Chinese steel producers were facing pressures of rising costs as a whole on substantial climb of iron ore prices. The producers were expected to intensify science and technology advancement and technology innovation, enhance technology content, develop high-end products, improve proportion of high-value added products, further strengthen management, lower consumption, save resources and lift their competition.
3. Global steel producers have entered high-cost era due to considerable rising prices of iron ore, coke and crude oil in the international market. From this point of view, steel prices will continue to keep high levels in the domestic and international markets in 2008.
4. It is strategically necessary for China’s steel industry to establish a long-term and steady supply chain of iron ore and coking coal. Chinese producers should further broaden international changes and co-operation, strengthen efforts to invest on or take part in overseas mines and establish longstanding and stable iron ore and coking coal bases through shareholdings.

China imports Russian iron ore fines for the first time from Alashankou Custom（2008/02/25）
Recently, Alashankou issued certifications of decreasing/exempting import taxes of an import deal of Russian iron ore fines. The deal contained 15,000 tons of Russian iron ore fines, which valued 1.89 million US dollars. This is the first import of Russian fines from Alashankou.
It is said that a company has signed an import deal of 250,000 tons iron ore fines in total, which values more than 30 million US dollars. The imported fines has an iron content of 65.5%, 2.5 percent higher than pellet, and the unit price is 126 US dollars per ton, US$ 29 lower than that of fines from Kazakhstan and US$ 35 higher than that of pellet. It is reported that the foreign fines sale is highly concentrated, and even was prohibited in the past two years.
Iron ore fines are made from raw iron ores, which was through crushing, grinding and concentration and other processes.

China’s steel exports down 5.4% year-on-year in January（2008/02/19）
According to statistics from customs, China’s foreign trade continued to grow rapidly in January 2008. Meanwhile, the county exported 4.14 million tons of steel products, down 5.4% year-on-year, imported 1.43 million tons of steel products, down 3.4% and 36.81 million tons of iron sands, up 2.7%.

Hebei’s steel output tops 100 million tons（2008/02/15）
Hebei Province produced 104.84 million tons of pig iron in 2007, up 22.14% year-on-year, 107.06 million tons of crude steel, up 17.72%, 104.75 million tons of steel products, up 37.26% and 309.54 million tons of iron ore, according to the Metallurgical Industry Association of Hebei.
Ratio of sheet and strip continued to improve and result of structural adjustment was obvious. The Association general secretary Wang Dayong noted provincial output of pig iron, crude steel and steel products all surpassed 100 million tons last year and ratio of crude steel to steel products has risen to 1.02:1 from 1.19:1 in 2006, suggesting a rapid growth of deep processing products from crude steel. Among other things, sheet and strip output was 55.92 million tons, up 51.1%, ratio of sheet and strip was 53.39%, up 4.89 percentage points.
In 2007, Hebei’s key metallurgical enterprises completed sales/output ratio of 99.97%, up 0.65%, achieved main business revenue of 544.51 billion yuan, up 45.41%; profits of 34.05 billion yuan, up 34.26%; profits and taxes of 54.17 billion yuan, up 33.68%. Completion of main economic indexes in the steel industry was in parallel with or better than the production growth of main products. After July, however, profit margins in the mills were squeezed substantially as their production costs grew fast due to soaring prices of raw materials.
Wang Dayong said steel producers in the province would face stiff challenges in 2008: Raw material and fuel prices remain high and prices of iron ore, coal, coke, electricity and transportation will further rise; cost pressure will become heavier due to new regulations on the imposition of mineral resources fee and rising labor costs; China will continue to strengthen macro regulations to curtail excessive growths of steel exports and fixed assets investment, to carry out tightened monetary policy and differential water and electricity fee policies on heavy energy consumption sectors.

Anhui stops the electricity supply to small iron and steel plants（ 2008/02/14 ）
To secure smooth transportation of coal, electricity and oil, and to wash out the outdated capacities in iron and steel and cement industries, economy commission of Anhui Province issued a notice, asking electricity department to stop the electricity supply to high pollution and high energy consuming small plants from 1st Feb, including the first and the second batch of outdated iron and steel capacities to be demolished, and the capacities should be but had not been washed out according to national policy by the end of 2007. Meanwhile, the electricity supply to the capacities to be demolished by June will be limited.
Accordingly, the electricity supply of 272 small iron and steel plants and cement companies had been cut off by the end of 1st Feb.

Sichuan urges to cut electricity supply for steel producers（2008/02/01）
Sichuan provincial government published an urgent notice on January 28 to suspend or restrict electricity supplies to eight heavy energy consumption sectors including steel, ferroalloy (including industry silicon), electrolytic aluminum, zinc smelting, calcium carbide, sodium hydroxide, phosphorus and cement. Since December 2007, most coal mines in the province have shut down for maintenance, coupled with deteriorated weather of cold rain and snow, power supply has become extremely tight in the region.
In order to ensure an overall supply target of at least 70,000 t/d of coal during the Spring Festival, 698 mines in the province are required to be under operations during the Festival with daily output of 126,000 tons on average.

Big iron ore deposit discovered（2008/01/30）
Geologists have discovered an iron ore deposit estimated to be at least 1 billion tons in northeast China's Liaoning Province after more than two years of exploration, local authorities said on Thursday.
The newly-found deposit, between 1,280 meters and 1,500 meters underground, is at the Pingshan District, Benxi City, said Wang Wenqing, deputy head of the Liaoning Provincial Survey Academy of Geology and Mineral Resources.
"We plan to spend two to three years finding out the actual reserves," Wang said.
"But we will have to wait even longer before we can start excavating."
Initial exploration shows that the iron ore is mainly hematite or magnetite, and the average iron content is 34.68 percent, said Yu Wenli, head of the Liaoning Provincial Bureau of Geology and Mineral Resources Exploration.
"The deposit can be exploited for more than 30 years," he said.

Hebei will construct the largest H section base in China（2008/01/28）
The H-section line in Jinxi Iron and Steel Company Ltd, with a capacity of 1.50 million tons per year, is the most advanced line in the world, whose products are sold to 15 counties and areas including Japan and South Korea. Till March 2008, in order to better the industry structure, Jinxi Iron and Steel will invest 2.6 billion Yuan to construct another medium H-section project. Therefore the largest H-section steel production base will emerge in Hebei Province till then.

MOC issues expiration notice on anti-dumping measures（2008/01/28）
According to the Article 48 of the Regulations of the People's Republic of China on Anti-dumping, the period for the levy of an anti-dumping duty and fulfillment of a price undertaking shall not exceed 5 years. However, the period for the levy of the anti-dumping duty may be extended as appropriate if, as a result of the review, it is determined that the termination of the duty would be likely to lead to continuation or recurrence of dumping and injury.
Any domestic industry or natural person, legal person or relevant organization on behalf of the domestic industry may make a written application to MOC for an anti-dumping investigation 90 days before the deadline of anti-dumping cases. The application letter shall contain sufficient evidence to prove possible continuation or recurrence of dumping and injury as a result of termination on anti-dumping duties.
If domestic industry or natural person, legal person or relevant organization on behalf of the domestic industry do not make written applications and MOC does not initiate expiry review on the anti-dumping investigations prior to the deadline, the former cases will be terminated by the time of expiry date.
Attachment:

Former Circular

Products Involved

Tax Numbers

 

Counties/Regions Involved

Expiry Date

No 50 (2003)

CR sheet/coil

72091500

72091600

72091700

72091800

72092500

72092600

72092700

72092800

72099000

72112300

72112900

72119000

 

Russia, Kazakhstan, Ukraine, South Korea, Taiwan

Sep. 23, 2008

　

Guangdong to eliminate 4.5 million tons of obsolete steel capacity in 2008（2008/01/23）
Guangdong Province eliminated three million kw of small thermal power stations, dismantled 17 small steel plants with outdated steel capacity of 500,000 tons, closed 93 cement lines with outdated capacity of 8.82 million tons in 2007.
In 2008, the province will continue to reduce emissions of SO2 and COD by 4% and 3.5% respectively and eliminate obsolete steel capacity of 4.5 million tons, outdated cement capacity of 10 million tons and shut down 3.85 million kw of small thermal power stations.
　

China auto sales likely to hit 10 mln in 2008(2008/01/22)
Chinese auto sales were likely to hit or surpass 10 million units in 2008, Cai Weici, vice chairman of China Machinery Industry Federation (CMIF) forecasted on Monday.
Official figures revealed that the country turned out 8.88 million automobiles in 2007, 22.02 percent more than the previous year, surpassing the eight million prediction made at the beginning of 2007.
Aggregate auto sales volume stood at 8.79 million, up 21.84 percent year on year.
Experts ascribed the robust sales growth to increasing market demand, as a recent survey by the State Information Center revealed more than 10 million Chinese households wanted to buy private cars soon. This was boosted by rising incomes and falling car prices.
The country is also stepping up its research and development of clean energy vehicles, including electric, fuel cell and hybrid automobiles, as energy saving and environmental protection has become a key concern of the country, said the CMIF.
Commercial vehicle output volume stood at 2.50 million, up 22.21 percent compared with the previous year and passenger vehicle numbers topped 6.38 million, up 21.94 percent year on year. This is the first year that the growth rate of commercial vehicles has surpassed passenger vehicles, according to the association.
Association statistics revealed domestic manufacturers had released nearly 90 new models onto the market last year.
　

The Ministry of Commerce publishes Circular of the first Batch of Export Quotas of Coke in Ordinary Trade in 2008（2008/01/18）
The Ministry of Commerce published Circular of the first Batch of Export Quotas of Coke in Ordinary Trade in 2008 as follows, according to the Regulation of the People's Republic of China on the Administration of the Import and Export of Goods.
1. The first batch of export quotas of coke will be granted to the enterprises that meet application conditions for export quotas of coke in 2008. The quota arrangement will mainly refer to actual export performance of each enterprise during the period from 2005 to November of 2007 and properly take into consideration of export amount in each enterprise.
2. Local authorities in charge of commercial affairs should inform of local enterprises the Circular, closely monitor export situations and report relative matters to the Department of Foreign Trade of the Ministry of Commerce.
                                                                           The Ministry of Commerce
                                                                                January 15, 2008


Laiwu closes 530,000 tons of obsolete steel capacity(2008/1/17)
As one of the eight cities who had agreed to close and eliminate outdated steel capacity in Shandong Province, Laiwu has entirely completed the targets to eliminate obsolete steel capacity of 530,000 tons, easing resources and environment pressures in the city.
Laiwu shut down one 3-ton electric furnace in Laiwu Rolling Steel Plant in 2005, eliminating 100,000 tons of outdated steel capacity, closed one 4-ton electric furnace in Jiuyang Industry Group in December 2005, eliminating 180,000 tons of steel capacity, closed one 106-cubic meter blast furnace in Quancheng Foundry Plant in March, 2007, eliminating 150,000 tons of outdated ironmaking capacity and dismantled two 5-ton electric furnaces in Rongxing Rolling Steel Plant, washing out 100,000 tons of steel capacity.
　

Hubei Province to eliminate 2 million tons of outdated capacity（2008/1/14）
Hubei Province has signed responsibility letter to eliminate 4 million tons of outdated capacity by 2010, including 2 million tons to be washed out in 2008. “Small steel facilities” in the province focus on Erzhou, Daye and Huangshi.
　

An iron mine with a reserve of more than 1 billion tons discovered in Liaoning Province（2008/1/10）
Geological Survey department of Geology Exploration Office in Liaoning Province discovered a large iron mine in Dataigou, Pingshan District, Benxi City, which has an estimated reserve of more than 1.0 billion tons. And the iron ore is hematite (magnetite), and the iron content is averaging 34.68%.
　

Outdated iron, steel smelting capacity reduced（2008/01/04）
China has eliminated 29.4 million tons of outdated iron smelting capacity and 15.21 million tons of outdated steel smelting capacity by the end of November, the National Development and Reform Commission (NDRC) said on Thursday.
"Eliminating backward iron and steel production capacities will help the country realize its environmental protection and energy-saving goals and facilitate the industry's restructuring," said NDRC Minister Ma Kai at a national iron and steel industry conference.
After the State Council, China's cabinet, held a teleconference on energy-savings in April, the NDRC signed obligation contracts of cutting iron and steel smelting capacity with 10 provinces, autonomous regions and municipalities, included Beijing, Hebei, Shanxi, Henan, Jiangsu, Shandong, Zhejiang, Jiangxi and Xinjiang, where the country's outdated iron and steel production capacities were mostly concentrated. This involved 344 iron and steel makers.
Four provinces, namely Zhejiang, Jiangxi, Henan and Shandong, had fulfilled their targets by November.
Shanxi, which shouldered the heaviest task of iron production capacity reduction in the first batch of 10 provincial-level regions, had completed 90 percent of its 10 million-ton quota.
The NDRC, the country's top economic planner, signed the second batch of obligation contracts with 18 provinces, autonomous regions and municipalities on Thursday to eliminate 49.31 million tons of outdated iron smelting capacity and 36.1 million tons of outdated steel smelting capacity. This involved 573 enterprises and included Baosteel, the country's biggest iron and steel manufacturer.
China decided to reduce energy consumption per unit of gross domestic product (GDP) by 20 percent by 2010, and to build the country into an energy-efficient and environmentally-friendly society.
However, energy consumption per unit of GDP fell only 1.23 percent last year, less than one-third of the average annual goal of 4 percent.
"Although the project of shutting down those outdated iron and steel smelters has achieved tangible results, there are still arduous tasks on the way ahead," Ma said.
The NDRC launched the "Top 1,000 Enterprise Energy Efficiency Action Plan" in September. This required the country's 1,000 largest domestic enterprises in iron and steel, petrochemical and other sectors to meet global energy efficiency requirements and to save 100 million tons of standard coal by 2010.
In a similar development, water consumption for each 10,000 yuan (1,368 US dollars) of value-added industrial output fell 8.9 percent to 154 cubic meters in 2006 compared with the previous year, the NDRC revealed.
　

NDRC inks responsibility letter with 18 provinces(2008/01/02)
The National Development and Reform Commission director Makai said in a working conference that as of the end of November, the provinces who had signed responsible letters for the first batch have closed and eliminated outdated pig iron capacity of 29.4 million tons and steel capacity of 15.21 million tons. Zhejiang, Jiangxi, Henan and Shandong provinces have entirely completed tasks in accordance with the responsible letters. Shanxi has eliminated 9 million tons of pig iron capacity out of 10 million tons required and meanwhile phased out 11.95 million tons of unlisted pig iron capacity in the letter. Shougang will also close 4 million tons of iron and steel capacity by the end of this year.
According to the responsible letters signed for the second batch, the country will close and eliminate 49.31 million tons of pig iron capacity and 36.1 million tons of steel capacity concerning 573 enterprises by 2010. During the first 10 months, composite energy consumption per ton in the key medium and large steel producers was 624.4kg standard coal, down 2.32% year-on-year, consumption of fresh water per ton was 5.46 tons, down 16.24%, SO2 emission declined by 0.4%, emissions of industrial soot and dust reduced by 2.78% and 3.11% respectively. The conference said it was even harder to eliminate 89.17 million tons of outdated pig iron capacity and 77.76 million tons of steel capacity, especially to close and wash out 37.06 million tons of pig iron capacity and 38.2 million tons of steel capacity within 2007.
The conference has mapped out tasks for the next stage as followings: to enhance awareness, to strengthen market roles, to implement target responsibility, to persist in administration according to the law, to improve policy measures, to build linkage mechanism, to maintain social stabilization and to intensify supervision and inspection.
　

Wuhai City in Inner Mongolia starts dismantling four small steel plants(2007/12/27)
Wuhai City in Inner Mongolia has eliminated cement kilns of 150,000 tons and coalmine of 30,000 tons in 2007. The city shut down two 12,000kw machines as first phase at Haibo Bay in early 2007, closed 100,000kw machines as first phase at Haibo Bay each in April and July. On December 15, four steel plants were ordered to close by the year-end, suggesting the city having entirely completed tasks of eliminating outdated capacity this year ordered by the Autonomous Region.
　

Hebei strengthens efforts to eliminate outdated steel capacity(2007/12/25)
The Provincial Development and Reform Commission of Hebei ordered this April to eliminate 3.98 million tons of outdated pig iron capacity and 5.19 million tons of steel capacity by the end of 2007. It was understood that the province has so far completed the target of shutting down steel capacity and eliminated 2.6 million tons of pig iron capacity with 1.38 million tons to be closed by the year-end.
Four measures have been put forward to make sure to complete those targets before the deadline.
To strengthen supervision and inspection;
To compulsively cut power supply to the outdated capacity from January 1, 2008;
To intensify differential electricity fee policy;
To announce the third batch of enterprises running outdated facilities.

Jiugang plans to produce steel 8.00 million tons in 2008(2007/12/25)
According to Jiugang Group, as a major state-owned and province-belonged steel company, Jiugang has played an important role in Gansu Province’s economy and society development. To realize the targets set by “11th Five-Year” plan, and secure the company’s sustainable development, Jiugang plans to produce 8.00 million tons of steel, and realize operating income 35.0 billion Yuan and profit 1.2 billion Yuan in 2008.
　

Shaanxi requires outdated steel facilities to be dismantled(2007/12/20)
Shaanxi Province will strengthen the efforts to shut down and eliminate outdated capacity in the local steel industry, according to sources from the Provincial Development and Reform Commission of Shaanxi. To prevent outdated facilities from avoiding eliminations, the removed facilities are required to be dismantled as ferrous raw materials. Outdated small blast furnaces are not required to transform production of casting pipe and ferroalloy.
Enterprises that failed to meet emission standards will be ordered to suspend operations immediately by the Environmental Protection departments and those failed to eliminate outdated capacity will be withdrawn their business licenses by the Industry and Commerce Departments or be revoked their production permits by the Quality Assurance Departments. Furthermore, power and water supply departments must take measures to cut electricity and water supply for those companies to force them to retreat from the market.
　

Guizhou to eliminate 121 heavily energy consuming enterprises in late 2007(2007/12/18)
Guizhou Province has decided to eliminate outdated capacity in 121 heavily energy consuming enterprises in the field of steel, ferroalloy and cement in late 2007. In 2007, 172 enterprises in the province have been required to address or rectify pollution related problems within certain period. The first bath of 19 heavily energy consuming enterprises that had been eliminated has reduced 3,108 tons of Chemical Oxygen Demand (COD) and 1,189 tons of SO2. Furthermore, the province has shut off all mini thermal power units below 65 MV.

Tianjin Port becomes the major port for unloading metal ores, coal and other materials（2007/12/17）
From Jan to Nov, Tianjin Port, which loads and unloads metal ores, coal, crude oil, iron and steel and so on as the main materials, had a throughput of 291,568,000 tons, increasing 22.7% from that of the same period in 2006; while loads and unloads 6,489,000 containers, increasing 20.4% with the same comparison. In the breakdown, 156,625,000 tons were shipped overseas, increasing