Shandong province has been recently busying for ironing out a program to wash out and compress steel industry backward capacity, following being approved as the only pilot project province for national steel industry adjustment.

According to the outline, Shandong province will wash out more than 10 million tonnes of backward capacity and control the overall capacity within 50 million tonnes during 12th Five Year Plan.

Currently, the comprehensive capacity of Shandong steel industry amounted to 63.09 million tonnes, raking the third in China. In 2010, this province produced 52.56 million tonnes of steel and realized CNY 415.7 billion of revenue. Nevertheless, Shandong’s steel industry development is primarily featured by extensive operation due to low industrial concentration, unreasonable product mix, high energy consumption and waste emission.

According to this national planning, during 12th Five Year Plan period, Shandong province needs to improve its costal steel capacity above 43%, high-end steel products’ proportion more than 30% and lower the comprehensive energy consumption and SO2 emission per tonne less than 3.9% and 47.4% respectively compared to 2009. Furthermore, the number of steel-making enterprises is targeted to be 5-6 from current 21.

(Source: www.steelhome.cn/en)
China steel information centre and industry database