CISA (China Iron and Steel Association) pledged to weed out low quality steel by June 30, 2017. “The elimination of substandard steel products is now a political mission. 12 inspection teams have already been dispatched to key destinations.” Lin Nianxiu, Vice-minister of the National Development and Reform Commission (NDRC) said in CISA Board Meeting on January 10, 2017.
Substandard steel, known as “Ditiao Steel” in China, refers to low quality steel products made simply through die casting after smelting scrap steel without any testing analysis. Industrial frequency furnaces and medium frequency induction furnaces are the main facilities in producing such steel products with key indexes like impurities and temperatures hard to be strictly controlled in the producing process. Once they are used in buildings, the safety hazard is unimaginable.
As key part of China’s supply-side structural reform, the central government is determined to clamp down on substandard steel producers. “99% substandard steelmakers are illegal producers. They must be cracked down resolutely.” Xu Lejiang,Vice-minister of the MIIT (Ministry of Industry and Information Technology) told the meeting.
CISA also stresses the two-step path for the 13th Five-year Plan of iron and steel industry: From 2016 to 2018, China will press ahead with overcapacity cut and structural reorganisation. The output of China’s top 10 iron and steel conglomerates should by then takes up 60% of national steel production. And from 2019 to 2020, China will focus on structural reorganisation as well as the industrial upgrade. By 2025, it will accomplish the upgrading work of steel-making facilities like quality control system.
-Edited by Mysteel.net
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