1、Policies for Development of Iron and Steel IndustryThe iron and steel industry is an important basic industry of the nationaleconomy, a supporting industry for realizing the industrialization and an intensiveindustry in technologies, capital, resources and energy, and its development requires acompr

2、ehensive balancing of all kinds of external conditions. China is a bigdeveloping country with a comparatively big demand of iron and steel in theeconomic development for a long time to go. Chinas production capacity of iron andsteel has ranked the first place in the world for many years. However, th

3、ere is a largegap in terms of the technological level and material consumption of the iron and steelindustry compared with the international advanced level, so the focus of developmentfor the future shall be put on technical upgrading and structural adjustment. In orderto enhance the whole technical

4、 level of the iron and steel industry, promote thestructural adjustment, improve the industrial layout, develop a recycling economy,lower the consumption of materials and energy, pay attention to the environmentalprotection, raise the comprehensive competitive capacity of enterprises, realize theind

5、ustrial upgrading, and develop the iron and steel industry into an industry withinternational competitive capacity that may basically satisfy the demand of thenational economy and social development in terms of quantity, quality and varieties,we have formulated the policies for development of the ir

6、on and steel industryaccording to the relevant laws and regulations and the domestic and internationalsituations that the iron and steel industry faces so as to guide the sound developmentof the iron and steel industry.Chapter I Aim of the PolicyAccording to the requirement of our countrys economic

7、and social developmentand the situation of resources, energy and environmental protection, the productioncapacity of iron and steel shall maintain at a reasonable scale, which may bespecifically resolved in the relevant planning. The comprehensive competitivecapacity of iron and steel industry may r

8、each to the international advanced level sothat China may become a large country in iron and steel production and a great powercountry in world-wide competitive.By the year 2010, through the means of structural adjustment of products, theproportion of good iron and steel products shall be elevated c

9、onsiderably, the majorityof products shall be basically satisfied the development requirements of mostindustries in the national economy such as construction, machinery, chemical industry,auto-mobiles, household appliances, vessels, traffic, railway, military industry andnew industries.We may elevat

10、e the industrial concentration by means of organizational andstructural adjustment of the iron and steel industry, and expand the scale of thosebackbone enterprise groups with comparative advantages by means of amalgamateand reorganization . By 2010, the number of iron and steel smelting enterprises

11、 shallbe considerably reduced and the production capacity of the iron and the output of steelenterprise groups that rank top 10 in the domestic market shall be reached to 50 % andabove of the national total production capacity; by 2020, the proportion shall bereached to 70% and above.By means of lay

12、out adjustment of the iron and steel industry, by 2010, theunreasonable layout shall be improved; by 2020, a comparatively reasonableindustrial layout that complies with the supply of resources and energy, allocation oftraffic and transportation, supply and demand of the market and environmentalcapa

13、city shall be formed.According to the concept of sustainable development and recycling economy, weshould elevate the comprehensive level of environmental protection and resourceutilization, and should save energy and lower consumption. We should elevate thecomprehensive utilization capacity of waste

14、 gases, water and rubbishes to the largestpossible extent, strive for the goal of realizing zero discharge and establish iron andsteel factories of the recycling type. The iron and steel enterprisesmust develop thebusiness of generating power by using reclaimed heat and energy. An iron and steelasso

15、ciated enterprise with the production scale of more than 5 million tons shall strivefor the goal of having more than enough power to support itself and providing thesurplus to outsiders. By 2005, the comprehensive energy consumption for each ton ofsteel shall be lowered to 0.76 ton of standard coal,

16、 the comparable energyconsumption for each ton of iron shall be lowered to 0.70 ton of standard coal and thewater consumption for each ton of steel shall be lowered to less than 12 tons in thewhole industry; by 2010, the corresponding index shall be lowered to 0.73 ton ofstandard coal, 0. 685 ton of

17、 standard coal and less than 8 tons of water, respectively;by 2020, the corresponding index shall be lowered to 0.7 ton of standard coal, 0.64ton of standard coal and less than 6 tons of water, respectively. That is, in the coming10 years, the iron and steel industry shall, on the precondition that

18、the totalconsumption of water resources decreases and the total energy consumption increasesby a small margin, and realize a proper development in total quantity.Before the end of 2005, all the wastes as discharged by iron and steel enterprisesshall have been met the standards of the state and local

19、 provisions, and the totaldischarge volume of major wastes shall have been met the controlling index asverified by the local environmental department.Chapter II Industrial Development PlanningThe state shall guide the iron and steel industry to develop in a sound,sustainable and harmonious manner th

20、rough the development policies and the mid-and long-term development planning of the iron and steel industry. The mid- andlong-term development planning of the iron and steel industry shall be formulated bythe National Development and Reform Commission (hereinafter referred to theNDRC) in collaborat

21、ion with other relevant departments.An enterprise group with a production capacity of more than 5 million tons in2003 may, according to the state mid- and long-term development planning of the ironand steel industry and the overall planning of the city where it is located, formulatethe planning of i

22、ts own, which shall be implemented upon the approval of the StateCouncil or the NDRC after making necessary cohesion and balancing efforts. Thespecific construction projects of the planning shall not be required to be subject to theexamination and approval or verification of the NDRC, but shall be o

23、rganized andimplemented by the enterprise itself after such formalities for examination andapproval of land, environmental protection, security and credit have been handled,and shall be reported to the NDRC for archival filing according to the relevantprovisions.The development of any other iron and

24、 steel enterprise shall also meet therequirements of the development policies and mid- and long-term developmentplanning of the iron and steel industry.Chapter III Adjustment of Industrial LayoutAdjustment of Industrial LayoutArticle 10For the adjustment of industrial layout,we should take such cond

25、itions as mineral resources, energy, water resources, trafficand transportation, environmental capacity, market allocation and overseas resourcesinto account in a comprehensive manner. For the layout adjustment of the iron andsteel industry, we shall not establish any new iron and steel associated e

26、nterprise alone,independent iron-smelting or steel-smelting factory as a general principle. Its notencouraged to establish any independent steel-rolling factory. We should, on the basisof those established enterprises that meet relevant conditions and in combination withmerger and relocation, carry

27、out reform and expansion in those regions with suchcomparative advantages as water resources, raw materials, transportation and marketconsumption. We should combine new increase of production capacity withelimination of backward production capacity and shall not, as a general rule,substantially expa

28、nd the production capacity.In the important regions ofenvironmental protection, the regions in serious short of water, the urban district ofbig cities, the iron and steel smelting and production capacity shall not be expandedany more. Those enterprises established within the districts shall, in comb

29、ination ofthe adjustment of organizational structure, equipment structure and product structure,cut production and move to other places so as to meet the requirements ofenvironmental protection and resource economization.Thinking over the bulk ores, energy, resources, water resources, transportation

30、condition and the domestic and overseas market the large-scale iron and steelenterprises shall be mainly located along the coastal areas. The iron and steelenterprises in inland regions shall, in combination with the local market and bulk oreresources, determine their production according to the min

31、es available, and shallregard the sustainable production as the main factor for consideration other than strivefor any expansion of production scale.There are abundant resources of iron mines in the Anshan-Benxi region innorth-east China, which is near the production bases of coal and has a certainc

32、ondition of water resources. According to the development strategy of vitalizing theold north-east industrial base, the iron and steel enterprises in this region shall,according to the requirements of associated reorganization and establishing atop-quality production base, eliminate the backward pro

33、duction capacity so as to buildup a large enterprise group with international competitive capacity. .As the region of North China is in short of water resources and the productioncapacity and level thereof is low and excessive, we should, according to theecological requirements of environmental prot

34、ection, put the focus on structuraladjustment, carry out merger and reorganization, strictly control the continuousover-increase of production factories and expansion of production capacity. Weshould relocate the Capital Steel Corporation and the reorganize it with the iron andsteel industry of Hebe

35、i Province.The steel material market in North China has a big potential. However, the layoutof iron and steel enterprises thereof are over-intensified and thus, the large backboneenterprises with comparative advantages within this region may, in combination of theadjustment of organizational structu

36、re and product structure, elevate their productionconcentration and international competitive capacity .As the central-southern region has abundant water resources andconvenientwater transportation, the south-east coastal regions shall make full use of theadvantage of deep waters and good harbors to

37、 build up large iron and steel associatedenterprises in combination with the industrial reorganization and the relocation ofurban steel factories.There are abundant water resources in the west-south regions, and in thePanzhihua-Xichang area has a large storage capacity of iron mines and coal resourcesbut with inconvenient transportation. The key backbone enterprises existed shallimprove their equipments level, adjust the variety structure, develop high-value-addedproducts, determine the production capacity according to the sustainable supplyingcapacity of