Steel Capacity Replacement of China
News about the situation of steel capacity replacement:
from January to August 2019, the nationally announced steel capacity replacement plan is that: to build 116.26 million tons of which the proposed new steelmaking capacity is 57.79 million tons, and the new ironmaking capacity is 58.47 million tons; to withdraw steel production capacity is 63.42 million tons and the iron production capacity is 67.01 million tons.
News about the capacity replacement added steels:
Since 2018, 96 capacity replacement schemes have been released nationwide. 46 of them will be put into operation before the end of 2020, involving 12 provinces (or urban areas) and 45 steel enterprises. It plans to build a new steelmaking capacity of 73.188 million tons and an ironmaking capacity of 683.705 million tons; the steelmaking capacity will be withdrawn 84.8628 million tons and the ironmaking capacity will be withdrawn 83.612 million tons. It is planned to build 48 new blast furnaces, 45 converters and 16 electric furnaces. According to preliminary calculations, 76% of steelmaking capacity and 42% of ironmaking capacity will be put into operation in the second half of 2020.
It is worth to notify that these production capacities are concentrated in East China and North China. Among them, Hebei Province, a major steel province, will put into production capacity of nearly 100 million tons in 2020, involving 49.858 million tons of steelmaking and 49.065 million tons of ironmaking capacity.
According to statistics in the first half of the year, the steel production capacity has withdrawn from 111 million tons and new built 94.46 million tons. Considering the actual over-production, the new effective production capacity should be around 1.2-130 million tons.