China: More steel mills have to reduce output in winter

China: More steel mills have to reduce output in winter

China recently asked more steel mills in the North of the country to cut output between November 15, 2021 and March 15, 2022 to ensure that the target of reducing steel output is met to minimize Environmental pollution.
China’s Ministry of Industry and Environment on October 13 announced that steel mills must comply with a plan to cut output from now until the end of the year to ensure output does not exceed last year’s level; At the same time, it requires factories in the period from January 1 to March 15, 2022 to cut steel output by no less than 30% compared to the same period in 2021.
In the first eight months of the year, China – the world’s largest steel producer – produced 733.02 million tons of steel, up 5.3% over the same period in 2020.
These new requirements will apply to steel mills as part of an anti-pollution campaign focused on 28 cities in the capital Beijing and surrounding areas, as well as eight other cities in Shandong and Hebei – regions that account for more than 40% of China’s total crude steel production in 2020.
To implement the emissions reduction roadmap, China has pledged to limit the development of high-polluting and energy-intensive sectors, including steel, in order to meet its emissions target. Accordingly, the goal is to keep crude steel output this year at a level not exceeding 1.065 billion tons in 2020.
Steel mills in the region, especially those that produce steel using blast furnace technology, will be ordered to cut output based on their emissions levels. Although mills using electric arc furnaces can take voluntary measures to reduce emissions, they still have to ensure their steel output is not higher than in the same period last year.

“Local governments are required to fulfill their duties by implementing economic support measures for businesses,” the environment ministry’s announcement said. Accordingly, local governments are responsible for ensuring that production facilities that are required to close are closed and that production cuts are enforced.

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