Backward production capacity should be eliminated

First, we will continue to consolidate our achievements in cutting overcapacity, prohibit new production capacity and improve the long-term mechanism. It is strictly prohibited to build or expand smelting capacity projects, strictly implement the policies and regulations on capacity replacement of welded steel pipe, project filing, environmental impact assessment and energy assessment, and prohibit new steel production capacity in the name of machining, casting or ferroalloy. We will strictly enforce laws and regulations on environmental protection, energy consumption, quality, safety and technology, and use comprehensive standards to promote the elimination of outdated production capacity in accordance with laws and regulations. We will study and implement differentiated regulation policies based on carbon emissions, pollutant emissions, total energy consumption, and capacity utilization. We will improve the long-term mechanism for preventing overcapacity, unblock reporting channels, strengthen joint law enforcement, strengthen industry early warning, and maintain a high-pressure crackdown.

Second, we will continue to optimize the organizational structure, promote mergers and reorganizations of China steel tube manufacturers, and make leading enterprises stronger and bigger. We will encourage mergers and reorganizations of leading enterprises and build a number of world-class super-large steel enterprise groups. Relying on the advantages of enterprises, in stainless steel, special steel, seamless steel pipe, cast pipe and other fields to cultivate 1 ~ 2 professional pilot enterprises. We will support the merger and reorganization of regional steel enterprises and change the “small and scattered” situation of the steel industry in some regions. We will guide enterprises in Beijing, Tianjin, Hebei and surrounding areas to participate in the merger and reorganization of steel enterprises in an orderly manner. The policy support of capacity replacement will be given to the smelting project construction of the enterprises that have completed substantive merger and reorganization. Financial institutions are encouraged to actively provide comprehensive financial services to iron and steel enterprises undergoing merger and reorganization, layout adjustment, transformation and upgrading in accordance with the principles of controllable risks and sustainable business.

Third, we will continue to improve the supply quality, expand the supply of high-end products such as black iron steel pipe, and promote the upgrading of variety quality. China has established a sound product quality evaluation system, accelerated the promotion of quality upgrading of steel products, promoted quality classification and classification evaluation in the fields of aerospace, shipbuilding and ocean engineering equipment, energy equipment, advanced rail transit and automobiles, high-performance machinery, and construction, and continued to improve the physical quality and reliability of products. We will support steel enterprises in targeting downstream industrial upgrading and the development of strategic emerging industries, focusing on the development of key varieties such as high-quality rectangular hollow section, special steel for high-end equipment, and steel for core basic parts and components, and strive to break through about five new types of key steel materials every year to meet the steel demand for major technical equipment and major projects.