China sets coal capacity elimination target for next 5 years

Thursday, 27 Oct 2011 | By SXCOAL

China has set the target of eliminating nearly 100 million tonnes of outdated coal production capacities in the 12th Five-Year Plan. In the next five years, China is targeting to phase out 97.18 million tonnes outdated capacity by closing 2,791 small coal mines.

Specifically, coal mines with annual capacity less than 30,000 tonnes would be shut and those with average recovery rate below 50% for three consecutive years would also be eliminated. Presently, there are some 10,000 small coal mines around the country.

The government shut 9,574 small coal mines, with a total capacity of 530 million tonnes during the 11th Five-Year Plan.

Chinese industry steels itself for changes in next 5 years - CISA

Friday, 25 Feb 2011

China Daily quoted the China Iron and Steel Association as saying that steel mills in north and northeastern China should stop enlarging their production capacities during the 12th Five Year Period (2011-2015) as the industry prepares for large scale changes.

Analysts said a developmental trend in China will see steel mills being relocated to coastal areas for financial and environmental reasons.

Ms Zhang Lin a senior analyst from Beijing Lange Steel Information Research Center said China is learning a lesson from the major economies and is now planning to move the industry to the coastal areas from inland regions.

She said that "The move will be beneficial to the environment because steel production is a process which consumes huge amounts of water. Under the pressure of fewer resources and worsening environmental pollution, it is wise to make this change.”

She added that the move will provide savings for the steel companies in the importation of equipment. She also said "The companies used to spend a lot on transporting the imported equipment inland. However, if the mills are located on the coast and close to ports it will be more convenient and economical."

According to the Lange Steel Information Research Center, North China steel mills produced a total of 170.89 million tonnes in 2010 accounting for 27.26% of the national industry production.

Ms Zhang said north and northeastern China have long been the key production bases, and their production capacity is already big enough to meet targets. It is part of a strategic plan to move production to the coastal areas to ensure the sustainable development of the industry.

Shougang Group, formerly the largest steelmaker in Beijing, moved its production facilities to Caofeidian Port in Hebei province in January. Ms Zhang said the mills in Caofeidian are conducting research on the desalination of seawater for industrial use, a development which if realized, will prove profitable for the industry.

CISA has also asked steelmakers to diversify their range of products, and contribute more towards the development of high speed railways, urban metro lines, oceanographic engineering off shore oil exploration and the renewable-energy industries.

(Sourced:China Daily)
Tags:steel production, northeastern china, Beiging, China Iron and steel association

Zhanjiang project part of the draft of 12th Five Year Plan

Monday, 07 Feb 2011
Nanfang Daily quoted some related official of Ministry of Industry and Information Technology disclosed that Zhanjiang Steel Project was being written down in the draft of 12th Five Year Plan.
The source revealed this information in an inside meeting held lately, saying that the 12th Five Year Plan has been drafted and was expected to be issued after their asking for advices of related authorities and enterprises.
Zhanjiang Steel Project, affected by domestic overcapacity and some other factors, has not officially started construction, though its preliminary work has earlier kicked off.
As disclosed, to speed up the construction of large-sized steel projects in Zhanjiang, Fangchenggang port, Caofeidian and Shandong coastal area will be covered in the 12th Five Year Plan draft an indication that Zhanjiang Project will likely make significant progress during the next five years.
Some related source noted that in terms of the layout of steel industry to promote the moving of steel industry toward coastal areas is a major effort. Steel capacity in coastal areas and areas along

Chinese steel industry to step up mergers in 12th five year plan

Monday, 31 Jan 2011
It is reported that during 12th five year period, several giant steel enterprises will be formed in China with strong ability of self innovation and global competitiveness, estimating top 10 steelmakers will take up 60% national capacity.

An insider said that it is part of important contents of steel industry 12th five-year plan.
As per report preliminary plan was basically finished and sought for next step opinions and given the plan was supposed to release at the end of last year.

As a big country of steel production and consumption, China crude steel production listed top one of the world for continuous 13 years especially in 21st century and crude steel annual growth was 21.1%. CISA officials estimated that total surplus still existed in 2011 due to severe blind investment.
In overall in the new plan, total volume of production capacity will be controlled, mainly satisfying domestic demand. In addition, new plan will focus on M&A and optimization of industrial distribution, upgrading standard of backward capacity elimination, energy saving and emission reduction. (sourced:mysteel.net for real time access to China steel new)

China to tackle steel overcapacity in new plan - Report

Thursday, 27 Jan 2011
Economic Information Daily citing a senior industry official as saying that China will renew its efforts to rein in overcapacity in its sprawling steel sector in the next five years.
The paper, run by state news agency Xinhua quoted an official with the Ministry of Industry and Information Technology as saying that China would focus on satisfying domestic steel demand over the 2011-2015 period.

While China draft five year plan for the sector was still under discussion, it already includes more plans to close down inefficient small scale producers and consolidate output in a number of very large scale steel enterprises.

China aims to put more than 60% of national steel capacity in the hands of its top 10 firms by the end of 2015 and big state owned firms like Baosteel and the Hebei Iron and Steel Group would be encouraged to increase annual capacity to 50 million tonnes to 60 million tonnes over the period.

China has long sought to strengthen the position of the big state-owned majors at the expense of thousands of small private mills, but flourishing demand has kept many of the minnows in business. While progress was made last year, the shift came largely as a result of one-off campaigns to meet energy efficiency targets which led to the temporary closure of hundreds of small mills. (Sourced from Economic Information Daily)