China: Crude steel output at Handan to fall 30%, y-o-y, in Q1CY’22 on pollution concerns

Handan City in China’s top steelmaking province of Hebei has recently issued a plan for the comprehensive treatment of air pollution in the autumn and winter of 2021-2022. For the steel industry, the plan proposes that enterprises ought to ensure that the city’s crude steel output reduction target is completed.

From 1 Jan-1 Mar’22, the ratio of staggered production of steel enterprises shall not be less than 30% of the crude steel output of the same period of the previous year. Environmental performance A-level companies and all-scrap short-process steelmaking companies that have completed ultra-low emission transformations independently adopt emission reduction measures.

During autumn and winter, crude steel production does not increase year-on-year; other companies are rated according to performance ratings and target tasks.

Since 2021, there have been violations of laws and regulations in national and provincial inspections and inspections of steel de-capacity, and the capacity utilisation rate has exceeded 120%.

Enterprises that are not listed in the Ministry of Industry and Information Technology’s iron and steel industry regulation announcements increase the proportion of staggered production.

Staggered production is based on the suspension of blast furnace equipment, and is specific to the enterprise, production line, production facility and time period.

It is strictly forbidden to replace it with a method of reducing production load. Staggered production of coke ovens, sintering, pellets, lime kilns and other production facilities supporting the blast furnace shall not be lower than the proportion of suspending blast furnaces included in peak shift production.


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