Ministry of Industry and Information Technology Issuance of the Iron and Steel Industry Twelfth Five-Year Development Plan
Gong Xin Gui [2011] No. 480
Industry and information technology competent departments of all provinces, autonomous regions, and municipalities directly under the Central Government, relevant trade associations, and relevant enterprises directly under the Central Government:
The iron and steel industry is an important basic industry in the national economy and plays an important role in our country’s process of industrialization and urbanization. In order to advance the transformation and upgrade the iron and steel industry and take a new industrialization path with Chinese characteristics, this Ministry has formulated the Iron and Steel Industry Twelfth Five-Year Development Plan in accordance with the Outline of the 12th Five Year Program Planning for the Development of National Economy and Social Development and the Plan of Industrial Transformation and Upgrade (2011-2015), now printed and distributed to you. Please implement the Plan earnestly according to the practical situation.
October 24, 2011
Attachment: Iron and Steel Industry Twelfth Five-Year Development Plan
Iron and Steel Industry Twelfth Five-Year Development Plan
Foreword
The iron and steel industry is an important basic industry in the national economy, which includes mining, mineral processing, sintering (agglomeration), coking, iron making, steel making, steel rolling, metal products and accessories, and other production processes. Since the reform and opening up, in particular the past ten years, the market has been playing an increasingly strong role in allocating resources. Iron and steel enterprises of various patterns of ownership have been growing in a coordinated way, and the industry’s product structure, organizational structure, and technology and equipment have been optimized. It has effectively supported the national economy to grow steadily and relatively fast.
The 12th Five Year Program will be a period to overcome difficulties, to further advance the scientific development and accelerate the transformation of the development pattern. The Development Plan of 12th Five Year Program for the Iron and Steel Industry has been formulated in accordance with the Outline of the 12th Five Year Program Planning for the Development of National Economy and Social Development and the Plan of Industrial Transformation and Upgrade (2011-2015). It primarily explains development strategies and goals for the iron and steel industry, clarifies key points of the development, guides the market to optimize the configuration of resources, and makes arrangements for the transformation and upgrade of the iron and steel industry. It is a guiding document for the development of our country’s iron and steel industry during the 12th Five Year Program.
I. Current Development Situation
During the 11th Five Year period, our country’s iron and steel industry realized the fastest development and achieved significant results in energy conservation and emission reduction. The iron and steel industry effectively met the requirements of economic and social development. At the same time, however, factors, such as resources and environment, became more restrictive for the industry’s development, and there were still prominent structural problems.
(I) Major Achievements in the 11th Five Year Period
1. Supported a stable and fast development of the national economy. During the 11th Five Year Period, our country’s production of crude steel increased from 350 million tons to 630 million tons with an average annual growth of 12.2%. The domestic steel market share increased from 92% to 97%. In 2010, the iron and steel industry achieved a total industrial output of 7 trillion Yuan, which accounted for 10% of the national total industrial output; the total assets were 6.2 trillion Yuan, which accounted for 10.4% of total assets of industrial enterprises at the national level and above, and provided important support in raw materials for construction, machinery, automobile, household appliance, shipbuilding and other industries, as well as the rapid development of the national economy.
2. Remarkable improvement of varieties and qualities. During the 11th Five Year, the structure of our country’s iron and steel products was further optimized, a full array of steel product varieties was developed, the product quality was continuously improved, and the self-sufficiency rate reached 100% for most varieties. Great progress was achieved in the development of key steel varieties, high performance steel materials, such as high strength construction steel plates, earthquake resistant construction high strength threaded steel bars, alloy materials for space vehicles, high performance pipeline steel, steel used in large hydroelectric power stations, high magnetic induction grain-oriented silicon steel, and steel rails for high speed railway, immensley supported the growth in relevant fields, and ensured the construction of the nation’s major projects, including venues for the Beijing Olympic Games, venues for the Shanghai World Expo, post-disaster reconstruction, manned space flights, and the lunar exploration program, and ensured the smooth implementation of key national projects, including the West-East natural gas transmission project, the Three Gorges project, and the Beijing-Shanghai high speed railway.
3. Significant improvement of technical and equipment levels. During the 11th Five Year period, for iron and steel enterprises that are included as key statistical points, the production capability of 1,000 cubic meter or higher blast furnaces was increased from 48.3% to 60.9%, the production capability of 100 ton or higher steel making converters was increased from 44.9% to 56.7%. Most enterprises had been equipped with facilities for molten iron pre-processing and secondary refinery of molten steel. The refinery percentage reached 70%. Continuous rolling mill had been realized in practically all steel rolling systems. Broad strip mills for hot continuous rolling and cold continuous rolling had been in short supply for a long period. They were increased from 26 sets and 16 sets to 72 sets and 50 sets, respectively. Large iron and steel enterprises, including Baosteel, Angang, Wugang, Shougang Jingtang, Masteel, Taigang, Shagang, Xingcheng Special Steel, and Dongbei Special Steel Daliann Base, reached the international advanced level in technology and equipment.
4. Remarkable achievements in energy conservation and emission reduction. During the 11th Five Year period, a total of 122.72 million tons of iron-making production capacity and 72.24 million tons of steel-making production capacity were eliminated. Energy conservation and emission reduction technologies, such as power generation through blast furnace top pressure difference, gas recycling, and regenerative burning, were extensively applied. A few large enterprises established energy management centers. The iron and steel industry’s energy conservation and emission reduction were advanced. For iron and steel enterprises that are included as key statistical points, their energy conservation and emission reduction were improved in all aspects in 2010. For each ton of steel, the comprehensive energy consumption was lowered to 605 kg standard coal, new water consumption to 4.1 cubic meter, and sulfur dioxide discharge to 1.63 kg, which were lowered by 12.8%, 52.3% and 42.4%, respectively, compared with those in 2005. The comprehensive utilization rate of solid wastes was increased from 90% to 94%.
5. Accelerated pace of merging and reorganization. Trans-regional reorganization was continuously advanced. The reorganization of Xinjiang 8.1 Steel, Shaogang and Ningbo Iron and Steel by Baosteel, the reorganization of Egang, Liugang, and KunSteel Holding by Wugang, the merging and reorganization of Pangang with Angang, the reorganization of Shuigang, Changzhi Iron and Steel, Guiyang Iron and Steel and Tonghua Iron and Steel by Shougang, the reorganization of Henan Yongxing Iron and Steel with Shagang, and the reorganization of Wuxi Iron and Steel Plant by Valin Steel were practically completed. New progress was made in regional merging and reorganization. Hebei Iron and Steel Group, Shandong Iron and Steel Group, Bohai Iron and Steel Group, and Xinwuan Iron and Steel Group were formed. Hebei Iron and Steel Group further reorganized 12 iron and steel enterprises in the region through gradual share integration.
6. Progress in the layout optimization. Modern coastal iron and steel bases, including Caofeidian, Bayuquan and Ningbo, were established. Iron and steel plants along the River, including Baosteel, Wugang, Shagang, and Magang, had greater influence. Preliminary preparation was completed for coastal bases of high quality iron and steel products in Zhanjiang by Baosteel and in Fangcheng Port by Wugang. The relocation of urban steel plants, such as Shougang, Chonggang, and Dalian Steel Plant, was practically completed. The layout of the iron and steel industry used to be dominated by domestic resources. Now, it is gradually transformed to a strategic layout that focuses on both international and domestic resources and is close to the market.
7. Continuously improved integration level of industrialization and informatization. In the iron and steel industry, industrialization and informatization advanced each other. The integration of the two was continuously deepened. Iron and steel enterprises greatly improved their informatization level in process and equipment, flow optimization, enterprise management, marketing, and energy conservation and emission reduction. They accelerated the transformation toward integrated applications. Basic automation was extensively applied throughout the industry. Iron and steel enterprises that are included as key statistical points had implemented manufacturing execution systems, in all aspects. Major iron and steel enterprises realized informatization of enterprise management, and gradually developed multi-layer, multi-angle informatized holistic solutions.
8. New paces in exploring and mining iron ore resources. During the 11th Five Year period, our country confirmed 15.1 billion tons of new iron ore deposits, an average annual increase of 3.02 billion tons. The annual domestic production of iron ore increased from 0.42 billion tons to 1.07 billion tons, an average annual increase of 20.6%, and strengthened the foundation of resources for the growth of our country’s iron and steel industry.
(II) Major Existing Problems
1. There is an urgent need to upgrade varieties and quality. The overall quality of our country’s steel products is still at a low level. Only about 30% could reach the international advanced level. It has been slow to upgrade products that are produced in large quantities and used in extensive applications, such as hot rolled threaded steel bars. The standards and specifications are unable to meet the requirement by reduced steel use. The product quality is not stable, and downstream industries are still not able to use steel materials in an efficient and scientific way. A few key steel products are still dependent on import. It is necessary to further improve the R&D and manufacturing technology level of high performance products that have high strength, corrosion resistance, long life, and reduced use. The iron and steel industry has not yet developed a service system to provide a complete suite of material solutions for downstream industries.
2. Progress in the layout adjustment is slow. The “heavy north and light south” layout of the iron and steel industry has not been improved for a long period. The southeast coastal area has rapid economic growth and high demand for steel materials, which results in the long period of supply shortage. The Bohai Rim possesses nearly 400 million tons of iron and steel production capacity with more than 50% of the products exported. The layout of the iron and steel industry in some areas does not meet the requirements by the national plan of primary function areas and by the migration of manufacturing industries. 16 municipalities directly under the Central Government and provincial capital cities have large iron and steel enterprises, which is increasingly incompatible with those cities’ overall development.
3. Restrictions by energy, environment and raw materials become stronger. Iron and steel enterprises that are included as key statistical points are still falling behind the international advanced level in energy consumption in sintering, iron making, steel making and other processes. The efficiency of secondary energy recycling needs to be further improved. The enterprises need to improve their management of energy conservation and emission reduction. System optimization needs to be further realized for mature energy conservation and emission reduction technologies. Dry de-dusting for blast furnaces and converters has not been extensively employed. Desulfurization by sintering has not been widely used. The development of green low-carbon processes is still in the beginning phase. We are faced with difficult tasks to reduce the emission of sulfur dioxide and carbon dioxide. The huge increase of iron ore prices has significantly squeezed the profit margin of the iron and steel industry and severely restricted its healthy development.
4. The capability of indigenous innovation is not strong. Iron and steel enterprises that are included as key statistical points only spend 1.1% of main business income on R&D, which is far lower than 3% in the developed countries. Most iron and steel enterprises have not yet developed a complete system of technical innovation. There is a weak foundation for indigenous innovation and a lack of high-level experts and leading talents. There are not many indigenous innovation achievements in process, technology, equipment and key products. Control and automation technologies and some key equipment for steel rolling processes are still mainly dependent on import. There is not sufficient investment in R&D of cutting edge technologies, such as non-blast furnace iron making and near net shape continuous casting and rolling.
II. Prediction of Market Consumption
The 12th Five Year period will still be an important period of strategic opportunities for our country to realize great growth. The iron and steel industry will enter a critical period to transform its development pattern. There are growth opportunities for structural adjustment, transformation and upgrade. On the other hand, there are also severe challenges, including the skyrocketing resource prices, slowing growth of the demand, and higher environmental pressure. Homogeneous competition will be intensified. The industry as a whole will see a trend of slow growth and low profits in operations.
(I) Development Environment
With respect to the international environment, the recovery and growth of the international economy are favorable for driving the development of global iron and steel industry. The continuing and rapid growth of economies in developing countries, in particular of the rising economies, has provided new markets for the iron and steel industry. At the same time, however, it will intensify the competition among iron and steel enterprises from different countries. The in-depth development of economic globalization will be favorable for our country’s iron and steel enterprises to extensively participate in international cooperation and competition. At the same time, the international financial crisis has resulted in profound impact. Various forms of trade protectionisms have emerged in the international iron and steel market, and the competition in market, resources, and standards becomes fiercer. Global supplies of raw materials and fuels, such as iron ore, and their price fluctuation will continue to bring great influence on the operations of our country’s iron and steel industry. Factors, including response to climate change and environmental protection, have imposed higher requirements on the development of the iron and steel industry. The international environment for the development of our country’s iron and steel industry becomes more complicated.
With respect to the domestic environment, our country will be mainly driven by domestic demand during the 12th Five Year period. The economy will maintain the trend of a stable and relatively fast growth, but the growth rate of gross domestic product (GDP) will be lower than in the 11th Five Year period. The growth rate of investment in fixed assets will slow down, and consumption and the service industry will play a gradually enhanced role in driving the economic growth. The consumption demand of iron and steel by our country’s economic development will continue to grow, but the growth rate will slow down. The transformation of the economic development pattern will reduce the intensity of iron and steel consumption per unit GDP, new materials will take the place of a portion of iron and steel products, the transformation and upgrade of downstream industries and the development of strategic new industries will impose higher and newer requirements on the quality of iron and steel products, and the integrated development between the iron and steel industry and other industries will be further strengthened. Restrictions by resources and environment will become tighter, and energy conservation and emission reduction will continue to keep iron and steel production capacity from being released. Impacted by the continuing price rise of imported bulk raw materials and fuels and by the rise of other element costs, the pressure on iron and steel production costs continues to grow, and operational risks continue to increase.
(II) Prediction of Crude Steel Consumption in 2015
Steel consumption is primarily affected by factors such as economic aggregate, economic structure, development stage, and scale of investment in fixed assets. During the 12th Five Year period, industrialization and urbanization will continue to be deepened, and large scale construction, such as housing projects for low-income people, water resource facilities, and transportation facilities, will drive the steel consumption. At the same time, our country will accelerate the transformation of development patterns, advance the industrial transformation and upgrade, and cultivate and develop strategic new industries. The “reduction of steel use” and substitution by other materials will have significant impacts on the consumption amount and consumption structure of steel materials. By holistically considering the above factors, the Plan has made prediction on the domestic crude steel consumption in 2015 using the following three methods:
Industrial consumption investigation. By investigating and analyzing the steel demand during the 12th Five Year period by 13 major downstream industries, including construction, machinery, automobile, transportation, mining, and petroleum and chemical engineering, predict that the consumption in 2015 will be around 750 million tons.
Regional consumption balance. According to the GDP development goals for the 12th Five Year period published by all provinces and municipalities and by considering the current steel consumption level and development trend in each region, predict that the consumption in 2015 will be 820 million tons.
Consumption coefficient and regression analysis. According to the goals set by the Outline of the 12th Five Year Program Planning for the Development of National Economy and Social Development, set up three different development scenarios, i.e. rapid, relatively fast, and appropriate development of the national economy during the 12th Five Year period. By combining the method of GDP steel consumption coefficient, the method of steel consumption coefficient for investment in fixed assets, and the regression analysis method, predict that the consumption in 2015 will be 810 million tons, 750 million tons, and 710 million tons, respectively.
In summary, we predict that the guiding domestic consumption of crude steel in 2015 will be 750 million tons.
(III) Mid- and Long-Term Prediction of Crude Steel Consumption
By referring to the development rules of iron and steel industries in the U.S., Germany, and Japan, and considering that our country has an expansive territory, we believe that the uneven economic development in different regions will have big impact on both total amount and duration of the steel consumption. By considering various factors and using the method of GDP steel consumption coefficient and the per capita crude steel method, predict that our country’s demand for crude steel may enter a peak zone during the 12th Five Year period. The peak may occur between 2015 and 2020 with the peak value at about 770-820 million tons, after which the peak zone will continue for a period. Along with the continuing in-depth development of industrialization and urbanization, and with the transformation of economic development patterns and industrial upgrade, the growth rate of the scale of investment in urban and rural infrastructure will slow down, and the growth rate of our country’s demand for iron and steel will have a downward trend year by year and enter a period of steady growth.
(IV) Prediction of the Demand for Key Steel Varieties
According to the steel demand by each industry, the consumption of key steel varieties in 2015 is predicted.
Table 1 Prediction of the Demand for Key Steel Varieties in 2015 No. Varieties 2010 (ten thousand 2015 (ten thousand tons) tons) 1 Heavy rails for railway 400 380 2 Railway wheel and axle steel 54 60 3 High strength steel bar 5650 11200 4 Axle steel 370 500 5 Gear steel 207 250 6 Alloy spring steel 260 450 7 Alloy mold steel 30 50 8 Shipbuilding plate 1300 1600 9 Steel plate for high pressure 100 160 containers 10 Cold rolling and zinc coated sheets 835 1400 for automobiles 11 Oil well pipe 380 470 12 High pressure boiler pipe for power 48 70 stations 13 Silicon steel sheet 572 650 14 Stainless steel 940 1600
III. Guiding Thinking, Basic Principles, and Main Goals
(I) Guiding Thinking
Use the Deng Xiaoping Theory and the important thinking of “Three Represents” as the guidance. Carry out the scientific development concepts in a deep and thorough manner. Adhere to the new industrialization path with Chinese characteristics. Satisfy the need by the transformation and upgrade of downstream industries and the development of strategic new industries. Set the structural adjustment, transformation and upgrade of the iron and steel industry as the main direction. Rely on indigenous innovation and technical reform as the support. Improve the quality. Develop more varieties of high performance steel products. Realize reduced use of steel. Advance energy conservation and emission reduction. Optimize regional layouts. Provide guidance for merging and reorganization. Enhance the security of resources. Increase the degree of openness to capital and improve the capability of international operations. Accelerate the transformation from focusing on scale expansion-based development to focusing on variety quality and profits.
(II) Basic Principles
Adhere to the structural adjustment. For the structural adjustment, give priority to developing more product varieties, improving quality, enhancing service, advancing reduced steel use, accelerating energy conservation and emission reduction, eliminating backward technologies and products, and optimizing the layout. Strictly control the expansion of production capacity. Accelerate the development of new iron and steel materials and productive service industry. Continue to advance merging and reorganization. Further increase the industrial concentration.
Adhere to green development. Proactively develop and promote the application of high performance steel, advance the in-depth integration of industrialization and informatization, accelerate the building of energy saving and environmentally friendly iron and steel enterprises, work vigorously to develop clean production and recycling economy, proactively develop and promote the use of energy conservation, emission reduction and low carbon technologies, and strengthen the comprehensive utilization of wastes as resources.
Adhere to indigenous innovation. Treat indigenous innovation as an important support for the sustainable development of the iron and steel industry. Strengthen iron and steel enterprises’ primary position in technical innovation. Accelerate original innovation, innovation in integration, and re- innovation when other people’s technologies are bought, digested and assimilated. Improve systems for technical innovation. Develop core technologies and brand products in which we have independent intellectual property rights.
Adhere to regional coordination. Carry out the nation’s overall strategies for regional development and strategies of primary function areas. According to conditions of resources and energy, market demand, environmental capacity, industrial foundation, and supporting logistic capability, plan in a coordinated way the economic development between coastal, frontier and inland areas, between upstream and downstream industries and between regions. Optimize industrial layout, and satisfy the needs of economic and social development in all areas.
Strengthen the security of resources. Improve the ability to secure resources to ensure the development and security of the industry. Make full use of the two types of resources and two markets, intensify cooperative development of overseas mineral resources, integrate the development of domestic iron ore resources, restore the order of the domestic iron ore market, and establish and improve a strategic support system for iron ore resources.
(III) Main Goals
At the end of the 12th Five Year period, the structural adjustment of the iron and steel industry to achieve significant progress, a relatively reasonable productivity layout to be practically formed, the security of resources to be significantly enhanced, the total amount and the product quality of iron and steel to substantially meet the demand by the national economic development, iron and steel enterprises that are included as key statistical points to reach the international advanced level in energy conservation and environmental protection, and some enterprises to possess relatively strong competitive strength and influence in the international market. The transformation of the iron and steel industry from big to strong to be preliminarily realized.
1. Variety and quality. The product quality to be significantly improved. The stability to be enhanced. The demand by key fields and major projects can be met. Support provided for the transformation and upgrade of downstream industries and the development of strategic new industries. Large scale production realized for products that are imported in large quantities, such as high strength and high ductility steel for automobiles, silicon steel sheets, etc. Their domestic market shares to reach above 90%; the self-sufficiency rate to reach 80% for high end products, including corrosion-resistant steel for ships, low temperature and pressure container plates, wheel and axle steel for high-speed railway, and high- pressure boiler pipe. High strength threaded steel bars that are 400 MPa and above will exceed 80%.
2. Energy conservation and emission reduction. Eliminate blast furnaces that are 400 cubic meters and smaller (not including cast iron), as well as converters and electric furnaces that are 30 tons and smaller. The dry coke quenching rate to reach above 95% for coke ovens in iron and steel enterprises that are included as key statistical points. Energy consumption and carbon dioxide discharge per unit of industrial added value will be lowered by 18%, respectively. For iron and steel enterprises that are included as key statistical points, the average comprehensive energy consumption per ton steel to be lower than 580 kg standard coal, new water consumption per ton steel to be lower than 4.0 cubic meters, sulfur dioxide discharge per ton steel to be lowered by 39%, chemical oxygen demand per ton steel will be lowered by 7%, and the comprehensive utilization rate of solid wastes will reach above 97%.
3. Industrial layout. Blind expansion in regions with excessive production capacity to be placed under control. The construction of bases of high quality iron and steel products in Zhanjiang and Fangcheng Port to be completed, and the problem of “northern steel shipped to south” will be fundamentally solved.
4. Resource support. Profit-sharing systems to be established to ensure the supply of raw materials and fuels, such as iron ore and coal, for the iron and steel industry. More than 100 million tons of new overseas production capacity of iron ore will be added.
5. Technical innovation. For iron and steel enterprises that are included as key statistical points, well- developed technical innovation systems to be developed, and the R&D investment will be more than 1.5% of the main business income. Achieve progress in indigenously innovated processes and technologies, such as green and low carbon smelting and comprehensive utilization of resources. Common key technologies, such as high efficiency production and energy conservation and emission reduction, will be extensively applied.
6. Industrial concentration. Greatly reduce the amount of iron and steel enterprises, and the steel production by iron and steel groups that are ranked top 10 domestically increased from 48.6% to about 60% of the national total amount.
Table 2 Main Indices of the Development of the Iron and Steel Industry in the 12th Five Year period
No. Index 2005 2010 2015 Accumulative growth during the12th Five Year period [%] 1 Increase of industrial 34.7 48.6 60 11.4* concentration of top ten enterprises in the industry (%) 2 Reduction of energy 18 consumption per unit of industrial added value (%) 3 Reduction of carbon dioxide 18 discharge per unit of industrial added value (%) 4 Reduction of enterprise average 694 605 ≤580 ≥4 comprehensive energy consumption per ton steel (kg standard coal) 5 Reduction of new water 8.6 4.1 ≤4.0 ≥2.4 consumption per ton steel (cubic meter) 6 Reduction of sulfur dioxide 2.83 1.63 ≤1 ≥39 discharge per ton steel (kg) 7 Reduction of chemical oxygen 0.25 0.07 0.065 7 demand per ton steel (kg) 8 Increase of the comprehensive 90 94 ≥97 ≥3* utilization rate of solid wastes (%) 9 Percentage of research, 0.9 1.1 ≥1.5 ≥0.5* experiment, and development budgets in main business income (%) Note: * is the increased or reduced percentage points in 2015 compared with 2010.
IV. Key Fields and Tasks
(I) Accelerate Product Upgrade
Advance the improvement of steel product varieties, quality and standards in all aspects. As required by the nation’s industrial transformation and upgrade, iron and steel enterprises shall treat the product upgrade as the most important task. For steel products that are produced in large quantities and have extensive applications, the improvement of their quality, grade and stability is the most important part of the product structural adjustment. Improve the properties and quality of iron and steel products in all aspects. Accelerate the upgrade of standards and effectively lower production costs. Further improve the percentages of molten iron pre-processing and external refinery. Place emphasis on the impact of accessories, such as iron alloys, on the product quality. Give priority to the construction of clean steel platforms, develop smooth processes, and promote the application of new generation processes and technologies, such as controlled rolling and controlled cooling. By working on both production and application, the enterprises improve the compatibility of iron and steel product standards with standards and specifications for downstream construction and manufacturing, establish and improve product quality inspection systems, further improve the quality of steel products for construction, machinery, light industry, shipbuilding and other industries, and enhance the quality stability.
Intensify the effort to promote the application of high strength steel bars. Support iron and steel enterprises to innovate the production of high strength threaded steel bars and the development of product varieties, to improve the product quality, to ensure the supply capacity, and to improve the production and market distribution systems for high strength threaded steel bars. Revise the steel standards for reinforced concrete, study and develop technologies to link high strength threaded steel bars, and meet the production requirements of high strength threaded steel bars. Aiming at the nation’s major urban and rural infrastructure projects, housing projects for low-income people, and key water resource construction projects, and based on a good completion of the pilot applications of high strength threaded steel bars in Jiangsu, Hebei and Yunnan, promote the application of 400 MPa and 500 MPa high strength threaded steel bars in large and medium cities across the country, and advance the upgrade and reduced use of construction steel products.
Develop key steel product varieties. Encourage capable iron and steel enterprises to develop high- end steel products and at the same time. Prevent homogeneous development of high-end products. Prevent investment from being wasted and avoid disorderly competition of high-end products.
Table 3 Upgrade Direction for Primary Steel Products Used in Downstream Industries
01 Construction Industry
Adapt to the trend of reduced steel use, upgrade the standards for hot rolled threaded steel, give priority to the development of high strength threaded steel bars of 400 MPa and higher, earthquake-resistant steel bars, high strength wires (hard wires); in the field of steel structure construction, give priority to promoting the application of highs strength, earthquake resistant, fire-proof and weather-proof steel plates and H beams. 02 Machinery Industry
Give priority to the development of high strength, low alloy plates with medium and high thickness and high strength bars, and improve the quality stability of steel products. 03 Shipbuilding Industry
Give priority to the development of high quality corrosion resistant ship panels for oil ships, low temperature and pressure container plates and high strength ship panels for large liquefied natural gas (LNG) transport ships. 04 Auto Industry
Give priority to the development of high strength auto beam plates of 700 MPa and higher, high strength auto plates of 780 MPa ~ 1500 MPa, and high strength and super high strength wire cord steel. Improve the surface quality and quality stability of the products. 05 Household Appliances Industry
Give priority to the development of high strength, thin steel plates for household appliances, improve the plate surface quality and smoothness, promote the application of green and environmentally friendly materials, such as aluminum-zinc coated steel plates that have been passivated or processed with anti- fingerprint films, hot-dip galvanized Cr-free passivated plates, Cr-free color coated plates, and environmentally friendly coated electrical steel plates. 06 Electrical Power Industry
Give priority to the development of large diameter, heat resistant and high pressure resistant pipes for supercritical, ultra-supercritical thermal power units, high performance ferrite and austenite stainless steel for nuclear power units, steel pipes of manganese, nickel and molybdenum alloys, silicon steel with low iron loss and high magnetic induction, and amorphous strips.
Advance the improvement of special steel quality in all aspects. Support the merging and reorganization of special steel enterprises. Strengthen the guiding role of leading special steel enterprises, such as Taigang, CITIC Pacific, Northeast Special Steel, and Baosteel Special Steel. Encourage special steel enterprises to take the development path that is “specialized, refined, unique and novel.” Vigorously advance technical progress and product upgrade for special steel enterprises. Develop green, low carbon, energy saving and environmentally friendly steel products and high performance special steel products that are needed by equipment manufacturing industry and aerospace industry. Place emphasis on the improvement of quality and performance of special steel products, such as axle steel, gear steel, tool and mould steel, stainless steel, and high temperature alloys, in particular on the extension of service life. Support and vigorously develop supporting industries for special steel, such as recycling systems of waste special steel.
Table 4 Key Points of the Development of Special Steel
01 Promotion of the Application of Special Steel Production Technologies
Special steel high clean smelting technology, special smelting technologies including electroslag casting and vacuum metallurgy, homogenizing and grain refining solidification technology, precise component control technology, controlled molding technology, special molding technology, and precise heat processing technology. 02 Key Special Steel Product Varieties to Be Developed with Priority
High quality bearing steel, axle steel, wheel, and spring steel for major equipment such as high speed railway, heat resistant steel for ultra-supercritical thermal power units, high grade stainless steel, high grade gear steel used in manufacturing industries, such as auto industry, tool and mould steel that has high polishing performance and high corrosion resistance, special corrosion resistant pipes for oil wells, special steel for aerospace parts and components, special steel for high grade numerically controlled machine tools, special steel for nuclear power units, high strength and high hardness alloy structural steel for engineering machinery, high temperature alloy and special alloy materials, special alloy steel pipe, silver steel, precise cold belt, and other products with advanced processing. 03 Development of Key Processes and Technologies for Special Steel
Large forging production lines, continuous casting of super-large round bloom, heat processing of special steel plates, high-grade special steel bars, and stainless steel seamless pipe, alloy steel wire production lines.
(II) Advance Energy Conservation and Emission Reduction to a Higher Level
Break down tasks and goals according to the nation’s overall requirements of energy conservation and emission reduction and according to regions. Reduce iron and steel enterprises’ energy consumption, carbon dioxide discharge and water consumption per unit of added value. Reduce the total amount of sulfur dioxide. Add devices to all sintering machines for flue gas desulfurization and waste heat recovery. Encourage denitration renovation. Adopt dry coke quenching on practically all coke ovens in iron and steel enterprises. Equip all blast furnaces with devices for high efficiency coal injection and for waste heat and waste pressure recovery. Improve the negative energy steel making level for converters. Further promote and popularize the application of energy saving technologies, such as dry de-dusting and regenerative burning. Strengthen the comprehensive utilization of solid wastes, such as iron and steel slags and dusts. Accelerate the development of businesses to recover and utilize resources and energy for the iron and steel industry. Advance the integration of iron and steel with other industries, and develop a recycling economy. Improve energy metering management systems. Strengthen energy management systems. Carry out energy auditing, clean production examination, and clean production plans according to the law.
Table 5 Key Points of Promotion and Application of Energy Conservation and Emission Reduction Technologies
01 Energy Conservation and Emission Reduction Technologies prior to Iron Making
Low temperature sintering technology, sintering flue gas desulfurization and denitration technology, pellet sintering technology, grate-kiln palletizing technology, pellet waste heat recycling and utilization technology, high temperature and high pressure dry coke quenching technology, coal moisture control technology, stamping coking technology, utilization of waste plastics by coke oven and blast furnace, high efficiency coal injection technology for blast furnace, dewetting blast technology for blast furnace, dry de-dusting technology for blast furnace, blast furnace and air heating furnace double pre-heating technology, and iron-containing dust and sludge processing by rotary hearth furnace. 02 Energy Conservation and Emission Reduction Technologies for Steel Making and Steel Rolling
Converter flue gas dry de-dusting technology, converter negative energy steel making process, electric furnace flue gas waste heat recovery and utilization and de-dusting technology, regenerative burning technology, low temperature rolling technology, online heat processing technology, and comprehensive utilization technology of steel rolling sinter. 03 Comprehensive Energy Conservation and Emission Reduction Technologies
Gas-steam combined cycle power generation technology, stock yard dust suppression technology, double membrane wastewater treatment and recycling technology, energy management centers and optimized regulation and control technology. Smelting slag comprehensive utilization technology, comprehensive wastewater treatment technology, and technology of comprehensive utilization of waste heat and waste pressure.
(III) Strengthen Technical Innovation and Technical Renovation
Advance enterprises’ technical innovation, and improve the iron and steel industry’s capability of indigenous innovation. Encourage the development and application of the following technologies: new generation circulated iron and steel flow; development of mineral resources that are of low grade, difficult to recover and refine, and co-existing and associated; comprehensive tailing utilization; non-blast furnace iron making; clean steel production with high efficiency and low cost; near net shape continuous casting and rolling plant; high strength, long life, and corrosion resistant product manufacturing; and cutting edge technologies for energy conservation and emission reduction, such as sintering denitration and de-dioxin. Support enterprises to develop new iron and steel materials for strategic new industries.
Accelerate the building of technical innovation systems and mechanisms, in which enterprises will play a primary role and the market will provide guidance. Such systems and mechanisms should combine industry, academia, research and application. Provide more incentives for innovation in metallurgy research institutions, higher education institutions and engineering design institutions. Encourage large iron and steel enterprises to increase R&D investment. Advance the formation of innovation strategic alliances among enterprises, research institutions, higher education institutions, engineering design institutions and downstream users. Improve technical innovation platforms, such as the iron and steel industry’s national engineering labs, key labs, engineering technology (research) centers, enterprise technology centers, technical innovation demonstration enterprises, high and new technology industrialization bases, and application demonstration of high efficiency steel products.
Table 6 Key Points of Technical Innovation
01 New Process, New Equipment and New Technology
Non-blast furnace iron making, new generation circulated iron and steel flow, steel strengthening and toughening technology, new generation controlled rolling and controlled cooling, large electrical furnace plant, industrialization of the short flow of continuous thin strip casting, coal-based needle coke industrialization, and R&D on industrial core process controller system (CCTS). 02 New Product and New Material Technology
Manufacturing technology for stainless steel for nuclear power, nuclear island pressure container steel plates, forging alloy steel for rotors of nuclear power generators, and steel for heat transfer pipe for nuclear power evaporators; manufacturing technology for steel for steam pipe, overheater, and reheater in ultra-supercritical thermal power units, and steel for high, medium voltage electrical rotors; manufacturing technology for super pure ferrite stainless steel, high nitrogen, nitrogen controlled austenite stainless steel, and super austenite corrosion resistant stainless steel; manufacturing technology for high quality corrosion resistant ship plates for oil ships and special corrosion resistant oil well pipes; manufacturing technology for high strength and high ductility steel for automobiles, high quality bearing steel, and gear steel. 03 New Technologies for Energy Conservation and Emission Reduction and for Cyclic Utilization of Resource and Energy
Blast furnace enriched oxygen and coal gas injection from coke oven, blast furnace top coal gas recycling and oxygen blast iron making, sintering denitration and de-dioxin, emission reduction of dioxin-like substances in electric oven steel making, direct reduction of vanadium titano-magnetite using rotary hearth furnace, new process for comprehensive utilization of mineral resources, recovery and utilization of sensible heat from blast furnace slag and steel slag, and technologies to use co-existing and associated minerals and minerals difficult to recover and refine.
Accelerate technical renovation, and advance optimization and upgrade of the iron and steel industry. Focus on the key points, such as product quality, energy conservation and consumption reduction, clean production, integration of industrialization and informatization, and safe production. Accelerate the application of new technology, new process, and new equipment. Renovate enterprises’ existing production facilities, equipment, and production process conditions. Continue the optimization of production flows and upgrade of enterprises’ technology and equipment. Improve the level of comprehensive utilization of resources. Strengthen the capability of new product development. Accelerate the product upgrade and further ensure a safe production.
Table 7 Key Points of Technical Renovation
01 Variety and Quality
Give priority to the development of key steel product varieties that meet the need by the development of downstream industries and strategic new industries. Improve product quality, grade and stability. Rely on capable enterprises to develop high grade, precise and advanced products and key steel product varieties, such as high speed railway steel, high magnetic induction grain-oriented silicon steel, high strength and high ductility steel for automobiles, high strength steel for machines, low temperature and pressure container plate, corrosion resistant steel used in shipbuilding industry, high performance oil and gas transport pipe steel, high strength steel for machines, steel used in marine engineering, steel used for oil and gas storage tanks, high pressure boiler pipe used in the power industry and steel for nuclear power. Thoroughly renovate and upgrade construction steel manufacturing enterprises to produce high strength threaded steel bars of 400 MPa and above. 02 Resource Development
Mining, selection and smelting of low grade and associated minerals, comprehensive utilization of tailings, and scrap steel processing. 03 Energy Conservation and Emission Reduction
Integration and optimization of converter, blast furnace flue gas dry cleaning and waste heat and waste pressure comprehensive utilization systems; integration and optimization of energy conservation and emission reduction systems for processes such as waste heat recovery from electrical oven flue gas, and the sintering; integration and optimization of waste heat utilization systems in the processing and utilization of solid wastes, such as smelting slags. 04 Process Technology
Process renovation and process optimization, such as clean steel production and new generation controlled rolling and controlled cooling (TMCP). 05 Integration of Industrialization and Informatization
Technical renovation of online monitoring, early warning, and control of steel properties, technical renovation of informatized integration systems, and construction of energy management centers.
(IV) Elimination of Backward Production Capability
During the 12th Five Year period, overcome difficulties and eliminate backward processes and products. Continue to strictly enforce laws and regulations on energy conservation, land and environmental protection. Employ legal means, economic means, and necessary administrative means in a comprehensive way. These means include differentiated electric power prices, fiscal awards, and examination and accountability. Intensify the effort to eliminate backward production capacity. Publicly announce the list of eliminated enterprises with backward production capacity. Solidly carry out annual plans to eliminate backward production capacity, and strictly prohibit the transfer of backward production capacity. It is important to combine the launch of large ones with the control of small ones, and to combine the backward elimination with newly launched projects. Based on the elimination of backward production capacity in each region, give priority to approving technical renovation projects for regions and enterprises that have a good performance in completing tasks of eliminating backward production capacity.
Table 8 Backward Production Process, Equipment and Product
01 Sintering, Pelletizing and Coking Production Process and Equipment
Sintering machines that are smaller than 90 square meters, indigenous sintering and thermal sintering processes, pallet shaft furnaces that are smaller than 8 square meters, indigenous coking (including improved coke ovens), carbocoal (Ramsbottom carbon) production apparatuses whose single oven production capacity is below 75,000 tons/year or without coal gas, whose tar recovery and utilization and wastewater treatment do not meet the requirements of access conditions, and conventional machine coke ovens with carbonization chamber height below 4.3 m (stamp-charging coke oven 3.8 m). 02 Iron Making and Steel Making Production Process and Equipment
Iron making blast furnaces that are 400 cubic meters and below, blast furnaces in professional cast iron pipe plants that are 200 cubic meters and below, main frequency and medium frequency induction furnaces that manufacture steel from scrap steel, and plain carbon steel (except for steel ingot for mechanical casting), steel making converters that are 30 tons and below, steel making electric furnaces that are 15,000 KVA and below (30 tons and below), and high alloy steel electric ovens that are 5,000 KVA and below (nominal capacity 10 tons and below). 03 Steel Rolling Production Process and Equipment
Double duo wire mills, pack rolling sheet mills, open-train bar and shape mills, common steel blooming mills and medium cogging mills, hot rolling ribbon steel (600 mm and below) mills, three-high Lauth- type medium plate mills, hot rolling seamless pipe units with diameter of 76 mm and below, and three- high open-train wire mills (not including special steel production). 04 Backward Products
Hot rolling silicon steel plates, Grade I threaded steel bar products, Grade II threaded steel bar products (eliminated according to the steel standards and construction specifications of the construction industry), 25A hollow steel window materials, and steel wires and steel stranded wires in common relaxation classes. Scrap steel-made steel and plain carbon steel that are manufactured by main frequency and medium frequency induction furnaces, as well as steel products produced with those as raw materials.
(V) Optimize Industrial Layout
Along with merging, reorganization and elimination of backward processes and products, consider various factors in a holistic manner to save certain enterprises and eliminate others, thereby optimizing the industrial layout, provided that production capability is not increased. These factors include market demand, transportation, environmental capacity, and conditions to guarantee resources and energy, such as iron ore, coal, water supply and electric power. For major layout adjustment projects, a comprehensive balance shall be reached among energy consumption, water consumption, environmental capacity, and transportation. It is a requirement to meet restrictive indices of energy consumption and environmental protection.
In principle, no new iron and steel bases will be arranged in the Bohai Rim and Yangtze River Delta. In regions with relatively large-scale iron and steel industry, such as Hebei, Shandong, Jiangsu, Liaoning, and Shanxi, the regional industrial layout are reduced and adjusted through merging, reorganization and elimination of backward production capacity. Provinces in central China, including Hunan, Hubei, Henan, Anhui, and Jiangxi, to proactively advance structural adjustment and industrial upgrade, provided that the total iron and steel production capacity is not increased. Some western areas with relatively isolated market to base themselves on their resource advantages, take on the transferred industry, and properly develop the iron and steel industry under different regional policies.
Continue to advance the construction of iron and steel bases in southeast coastal areas. During the 12th Five Year period, accelerate the construction of bases of high quality iron and steel products in Zhanjiang and Fangcheng Port, completely address the imbalance between steel supply and demand in southeast coastal areas, advance the construction of Ningde Iron and Steel Base in Fujian, and promote the economic development on the west side of the Strait. By building the above major layout projects, control areas with excessive iron and steel production capacity from blind expansion.
Existing iron and steel enterprises in western areas to accelerate industrial upgrade and grow at a pace compatible with energy, iron ore, water resources, environment, and market capacities. Border areas, including Xinjiang, Yunnan, and Heilongjiang, will proactively explore and use minerals, energy and market in surrounding areas beyond the border to develop the iron and steel industry. Make full use of the advantages in vanadium and titanium resources in Panxi and rare earth resources in Baotou to develop the iron and steel industry with characteristics in comprehensive utilization of resources.
Advance in an orderly manner the transformation or relocation of steel plants that are not compatible with urban development. Transform or relocate and renovate iron and steel enterprises that play a lesser role in economic support and have prominent incompatibility with resources and environment. Enterprises with weak comprehensive strength and low technical level should be transformed to develop iron and steel services or other businesses. Urban steel plants having capabilities, technologies and characteristics must be relocated in an environmentally friendly and orderly manner. Such relocation shall be coordinated with merging and reorganization, elimination of backward production capacity and industrial upgrade of iron and steel enterprises in the region, and also consider overall urban development planning and those enterprises’ capability, in particular personnel placement and other factors. It is strictly prohibited to expand the iron and steel production capability in the name of relocation. During the 12th Five Year period, support the relocation and renovation or transformation of urban steel plants in Guangzhou, Qingdao, Kunming, Hefei, Tangshan (Fengnan), Hangzhou and Wuhu according to the actual situation, and scientifically evaluate the development and positioning of urban steel plants in Xining, Fushun, Shijiazhuang, and Guiyang.
(VI) Strengthen Resource Support Capability
Strengthen the system building to ensure iron ore resources. Proactively optimize the global configuration of iron ore resources, encourage iron and steel enterprises to establish profit-sharing mechanisms with countries that have the resources. Diversify regions for investment. Build stable and reliable bases of raw materials and fuels, including iron ore, chromium ore, manganese ore, and coking coal, and build transport support systems in an orderly manner in countries and regions, as well as surrounding countries, that have resource advantages. Restore the order in domestic iron ore market, intensify the effort in exploration of domestic iron ore resources, and improve the level of tailing recovery and comprehensive utilization. Provide necessary support to ecological restoration and land reclamation of closed mines. Encourage the integration of existing domestic mining resources, increase the industrial concentration, ensure an orderly development, and strictly prohibit small-scale mining of large mines and unauthorized mining.
Accelerate the building of scrap steel recycling systems that are compatible with the development of our country’s iron and steel industry. By relying on domestic scrap steel processing and distribution enterprises that meet environmental protection requirements, give priority to building a group of scrap steel processing demonstration bases, improving the industrial chain of processing, recycling and distribution, and improving the level of scrap steel processing technology and equipment and the quality of scrap steel products. Proactively study and formulate preferential policies and measures for importing scrap steel, and encourage the establishment of scrap steel recycling, processing and distribution bases overseas.
(VII) Accelerate merging and reorganization
Follow the principles that operations are market-oriented, enterprises play a primary role, and the government provides guidance. Let enterprises that comply with the nation’s policies for the iron and steel industry and the Standards and Conditions for Production and Operation of the Iron and Steel Industry play a primary role in merging and reorganization. Based on elimination of backward production capacity, technical renovation and layout optimization, accelerate the pace of merging and reorganization of iron and steel enterprises. Encourage private capitals to participate in the merging and reorganization of state-owned iron and steel enterprises.
Give priority to supporting large iron and steel enterprises with authority to carry out trans-regional, trans-ownership system merging and reorganization. Bring into play the leading role of large iron and steel enterprise groups, such as Baosteel, Angang, Wugang, and Shougang, to form 3-5 enterprise groups with core competitive strength and strong international influence. Give priority to advancing the improvement of merging and reorganization between Angang and Pangang, Bengang, and Sangang, between Baosteel and iron and steel enterprises in Guangdong, between Wugang and iron and steel enterprises in Yunnan and Guangxi, and between Shougang and iron and steel enterprises in Jilin, Guizhou, and Shanxi.
Proactively support merging and reorganization by iron and steel enterprises with regional superiority. Greatly reduce the number of iron and steel enterprises. Drive regional iron and steel enterprises to accelerate industrial upgrade, continue to improve the level of development, and form 6-7 enterprise groups with powerful market competitive strength. Consolidate reorganization achievements by Hebei Iron and Steel and Shandong Iron and Steel, proactively advance Tangshan Bohai Iron and Steel and Taiyuan Iron and Steel to start merging and reorganization, and guide iron and steel enterprises in the provinces of Hebei, Jiangsu, Shandong, Shanxi, Henan, and Yunnan in merging and organization.
Enhance coordination and management of merging and reorganization. Keep harmonious, healthy development among all iron and steel enterprises. Avoid vicious competition. It is important for reorganized enterprises to realize synergistic effect, to pay attention to structural and system innovation, to carry out substantial integration in strategic management, planning and development, technical innovation, personnel, finance and materials, and production, supply and sales, and to recreate business flows. It is important for reorganized enterprises to intensify the elimination of backward production capacity and to intensify energy conservation and emission reduction, and to solidly protect employees’ legitimate interests.
(VIII) Strengthen the Extension and Coordination of Iron and Steel Industrial Chain
Change service concept and strengthen service awareness. Establish strategic cooperation mechanisms between iron and steel enterprises and downstream users. Develop advanced steel processing. Improve logistic distribution systems. Improve product values and enterprises’ service functions. Advance the transformation from iron and steel manufacturers to service providers. Strengthen the government guidance, advance industrial integration, and promote the application of new steel products. Encourage iron and steel enterprises to establish steel service centers, join hands with downstream industries to develop new iron and steel materials and downstream products, provide all-round iron and steel material solutions for users, and realize mutual benefits and win-win situation between the iron and steel industry and downstream industries. Proactively develop consultation services, technical intermediary services, industrial design, electronic business, and other iron and steel services. Proactively develop service outsourcing in repair, storage and logistics, as well as the outsourcing of auxiliary procedures, such as oxygen preparation, lime, slag treatment, and categorized processing of scrap steel.
(IX) Further Improvement of Internationalization Level
Make full use of two markets and two types of resources, plan “bringing in” and “going global” in entirety, strengthen internalized operations, and deepen economic and technological cooperation. Further expand the opening up of the iron and steel industry, encourage foreign advanced and well-known iron and steel enterprises to join domestic iron and steel enterprises and projects through participation and investment, invest to establish enterprises and R&D centers in the field of advanced steel processing, and improve the innovation capability and management level of our country’s iron and steel enterprises.
Overseas investment to build iron and steel plants is a major strategy for our country’s iron and steel industry to carry out “going global.” Study overseas regions and countries that are suitable for the transfer of the iron and steel industry, formulate incentive policies and measures, support domestic iron and steel enterprises and other enterprises to invest in other countries to build iron and steel plants and economic and trade cooperation areas, participate in merging and reorganization of foreign iron and steel enterprises, create marketing networks, improve the capability and level of domestic iron and steel enterprises in participating in international competition, and create internationalized enterprise groups with powerful international competitive strength. Support some border areas to develop iron and steel businesses that have market in and raw materials and energy from other countries.
V. Policies and Measures
(I) Improve Industrial Management Systems
Establish and improve operation monitoring networks and early warning systems for the iron and steel industry, strengthen industrial information statistics and information release. Strengthen trade management, promptly coordinate and solve major issues in the industrial development, lessen burdens on enterprises, develop a strict management of safe production, and advance the industry to run and grow steadily. Bring into play the positive role of associations and other intermediary organizations in enhancing information exchange, trade self-discipline, and right safeguarding for enterprises.
(II) Create a Market Environment for Fair Competition
Bring in full play the fundamental role of market in configuring resources, strengthen and improve macro adjustment and control. Restore orders of production and operations in the iron and steel industry, improve market access and exit mechanisms for the iron and steel industry, create a market environment in which iron and steel enterprises of various ownerships use production factors equally by the law and participate in market competition fairly. Resolutely stop illegal activities, such as tax evasion, production of fake and forged products, and severe environmental pollution.
(III) Strengthen Standardization in the Trade
Strengthen the role of standardization in product quality, enterprise management, production and operation, and market development. Push forward the revision and improvement of standards that have fallen behind the actual development. Strengthen the cooperation between iron and steel enterprises and downstream enterprises that use steel, and jointly advance the building of standardization system for the iron and steel industry. Strengthen the organizational management and supervision on the standardization and bring into play the primary role of enterprises in standardization.
(IV) Strengthen Macro Guidance by Policies
Strengthen the connection between various policies in taxation, finance, trade, land, energy conservation, environmental protection, and safe production and policies for the iron and steel industry. Promptly publish guidance catalogs of advanced technology, product and equipment for the iron and steel industry, and point out the direction for the development of advanced production capability of the iron and steel industry. Strengthen standardized management of existing iron and steel enterprises’ production and operation. The enterprises to be more restricted and guided by product quality, energy conservation and emission reduction, environmental protection, equipment level, reasonable scale, safe production and social responsibility. Publish in batches lists of enterprises that have met the production and operation standards. Develop guiding opinions for merging and reorganization in the iron and steel industry, and guide localities and enterprises to carry out merging and reorganization.
(V) Advance International Exchange and Cooperation
Improve mechanisms of iron and steel exchange between China and other countries, and advance communications among all parties in information, technology, and management. Promptly adjust product import and export trade policies, and proactively respond to international trade frictions. Establish efficient coordination mechanisms and support enterprises to develop overseas resources in an orderly manner. Guide overseas iron and steal enterprise groups having international competitive strength to participate in domestic merging and reorganization, as well as joint ventures and cooperation. Support large and strong enterprises to develop international cooperation on low carbon manufacturing technologies.
(VI) Advance In-depth Integration of Industrialization and Informatization
Advance the assessment of the integration level of industrialization and informatization in the iron and steel industry, and establish and improve a working system for informatization standards and specifications for the iron and steel industry. Advance enterprises to build informatized integration systems that integrate production, supply and sales, connect management and control, and synchronize three flows (information flow, capital flow and material flow). Support trans-regional enterprise groups to build and improve information systems that are distributed in different areas, and to improve management and control efficiency. Strengthen the building of support systems for information security and system security, and improve the security of informatized systems and the capability to ensure stability.
(VII) Improve Mechanisms to Implement the Plan
Government agencies in charge of the industry in all areas shall combine the development of the iron and steel industry with all tasks in their respective areas, including merging and reorganization, elimination of backward production capacity, development of large ones and control of small ones, energy consumption and environmental capacity. It is important to implement tasks, policies and measures proposed by the Plan while considering the actual development of their respective areas. It is important for relevant enterprises to develop plans that are compatible with this Plan and to work well on the coordination of major goals and key tasks in this Plan. It is important for trade organizations including China Iron and Steel Association to act as a bridge, to promptly provide feedback of new situations and new problems in the implementation of the Plan by the iron and steel industry, and to provide opinions for policies.