China Business News reported that steel industry is hopeful to attract some CNY 1 billion fund from the central government for technical reform this year.

Mr Jia Yinsong with the Industry & Information Technology Association on a steel production forum in January said that the government's support of technical reform, R&D and introduction of specific technological progress of the enterprises with loan discount has already been a concern among the industries revitalization plans. A budget of CNY 15 billion would be used to aid technical reform of the ten industries listed for support.

It's revealed by the authorities that about CNY 3 billion will go to the central enterprises, and the left to each province or city for specific projects that may need the money. This is yet to be confirmed.

As an important part of support, the revitalization plan also elaborates on which technical projects can be funded. For example, to develop key steel varieties such as high speed railway steel, high magnetic grain oriented silicon steel, high strength mechanical steel, promote application and material saving of high intension rebar, encourage high temperature, high pressure coke dry quenching, reuse of waste heat and other recycling techniques, as well as tap low grade iron ore smelting skills.

The technical reform and specific technological progress fund will mainly be spent by the large backbone enterprises and crucial materials production enterprises such as national defense, aviation and spaceflight.

According to the insiders for the steel sector, the number of enterprises to benefit may not be many. Baosteel, WISCO and Angang will try to make high-magnetic grain oriented silicon steel and Pangang, Angang and Magang are in railway steel. In general, few medium and small steel mills will be affected.

(Source: China Business News)