The shift of steel production capacity to the coastal areas is an inevitable trend.
Published Time:
2021-10-27
Both the Steel Industry Adjustment and Revitalization Plan and the revised Steel Industry Development Policy emphasize the shift of steel production capacity to the coastal areas. "The shift to the coastal areas is a major trend."
Both the "Steel Industry Adjustment and Revitalization Plan" and the revised "Steel Industry Development Policy" emphasize the shift of steel production capacity to the coastal areas. "Shifting to the coast is a major trend."
Due to historical reasons, the vast majority of China's steel mills are currently located in cities, resulting in a highly unreasonable layout. Currently, inland regions such as North China have a serious overcapacity, while the southern coastal regions, which have a strong demand for steel, lack capacity. This leads to the long-distance transportation of iron ore and steel, increasing logistics costs and exacerbating railway capacity constraints. Coupled with pollution issues and urban expansion, steel companies urgently need to relocate to the coast.
Japan's steel companies, which are mainly located along the coast, serve as a reference. They have significant cost advantages in terms of resource and energy acquisition, and possess strong global competitiveness.
In view of this, the "Steel Industry Adjustment and Revitalization Plan" proposes to promote the relocation of urban steel mills to reduce urban environmental pollution. By 2011, the proportion of coastal and river steel enterprises' production capacity to the national total will reach over 40%, significantly optimizing the industrial layout. The revised "Steel Industry Development Policy" also proposes that through the relocation of urban steel mills and coastal steel layouts, the unreasonable situation of steel layout will be improved by 2015, and a situation that is adapted to resource and energy supply, transportation configuration, and market supply and demand will be formed by 2020.
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