Revised Implementation Measures for Capacity Replacement in the Steel Industry Released, Accelerating the Reduction of Quantity and Improvement of Quality in the Steel Industry.

On May 18th, the Ministry of Industry and Information Technology issued the revised "Implementation Measures for Capacity Replacement in the Steel Industry," which will be implemented from the date of issuance of the document. The "Replacement Measures" further tightened the requirements for capacity replacement, emphasizing differentiated policy guidance and strengthening supervision and management requirements. The main revisions are as follows: first, to increase the replacement ratio. The replacement ratio for national iron and steel production capacity shall not be less than 1.5:1, and the merger and reorganization replacement ratio shall be increased to not less than 1.25:1. Second, gradually cancel capacity replacement between different enterprises. A 2-year transition period is set for capacity replacement between different enterprises; after the transition period, capacity replacement between different enterprises can only be achieved through substantial merger and reorganization. Third, set an effective period. The validity period of the plan is 24 months. Fourth, regulate the construction of equipment for stainless steel enterprises. The number and volume of melting alloy induction furnace equipment for stainless steel enterprises must match the requirements of their electric furnace or converter process to prevent enterprises from abusing the construction of induction furnaces under the guise of melting alloys to add new steel production capacity. Fifth, support high-end and green development. The construction of low-carbon smelting equipment such as hydrogen metallurgy, electric furnaces, and special steel enterprises constructing limited and below electric furnaces can implement differentiated replacement ratios. Sixth, increase the closed-loop management of capacity replacement plans. Provincial industrial and information technology authorities are responsible for organizing verification of the implementation of capacity replacement plans, conducting annual self-inspections of implementation, and submitting self-inspection reports. Seventh, strengthen policy linkage. In terms of environmental impact assessment, emission permits, energy conservation reviews, and carbon emission assessments, strengthen coordination with the National Development and Reform Commission and the Ministry of Ecology and Environment to form a coordinated effort across departments. The "Implementation Measures for Capacity Replacement in the Steel Industry" specifies that it applies to various ownership enterprises in the People's Republic of China for new, renovated (including major repairs), and expanded iron and steel smelting equipment projects. The major revisions to the measures include: first, increasing the replacement ratio for iron and steel smelting production capacity; second, gradually canceling capacity replacement between different enterprises; third, setting an effective period for the plans; fourth, regulating the construction of equipment for stainless steel enterprises; fifth, supporting high-end and green development; sixth, enhancing the closed-loop management of capacity replacement plans; seventh, strengthening policy linkage. The revised measures aim to promote the reduction and upgrade of the steel industry and achieve high-quality development.