State encourages long-process steel enterprises to switch to electric arc furnaces


The 2020 version of the capacity replacement regulations reflects the state's support and encouragement for electric arc furnace steelmaking.

The new "Measures for the Implementation of Capacity Replacement in the Iron and Steel Industry in 2020" (Draft for Comments) was released. The third point of Article 6 of the 2020 edition is that projects in which iron and steel enterprises in various regions withdraw from converter construction of electric furnaces and withdraw from supporting sintering, coke ovens, blast furnaces and other equipment can implement equal replacement of steelmaking capacity, and the withdrawn ironmaking capacity can be used for replacement according to the provisions of these Measures. The project of replacing the new electric furnace with the existing electric furnace can implement the same amount of replacement. The same amount of replacement can be implemented for internal technical transformation projects that do not add new steel capacity in the original plant area. Exit supporting sintering, coke oven, blast furnace and other equipment to build non-blast furnace ironmaking project ironmaking capacity can be implemented in the same amount of replacement.

The average proportion of electric furnace steelmaking in developed countries in Europe and the United States is relatively high (42% in the European Union and 62% in the United States), while that in China is only 7%. In the past, because of the lack of scrap steel in China, it was difficult to effectively promote electric arc furnace steelmaking, but now China has entered the stage of explosion of scrap steel production, and electric arc furnace steelmaking needs to re-enter the stage of promotion and encouragement, not only for the progress of industrial technology, but also for the effective protection of the environment and resources, and take the road of sustainable development. Therefore, the 2020 version of the production capacity replacement regulations: withdrawal from the construction of blast furnace and converter related projects, the construction of electric furnaces can not only replace the old ironmaking capacity in equal quantity, but also sell the old ironmaking capacity or participate in other production capacity integration projects, while the replacement of the new electric arc furnace project by the old electric arc furnace project can be replaced in equal quantity, and the technological upgrading can be replaced in equal quantity, which all reflect the state's support and encouragement.

The fourth point of Article 6 of the 2020 edition: Provinces (autonomous regions and municipalities) that have not completed the total control target of steel production capacity shall not accept steel production capacity sold by other regions. Air pollution prevention and control key areas, ecological civilization demonstration areas and other areas are strictly prohibited to increase the total amount of steel production capacity. It is strictly forbidden to build or expand steel projects within 1km of the main tributaries of the Yangtze River.

Through the new revision of the environmental protection law and the promotion of green steel enterprises, it is urgent to take the road of sustainable development, and the government is also constantly promoting it. It is necessary to have a new indicator of the development of the industry, and a large number of steel companies are working hard to improve and improve environmental protection equipment. Through the further provisions of the 2020 version of capacity replacement, it reflects the country's measurement of the environment and economy, and walks out a road that not only realizes the protection of the environment, but also promotes the development of the steel industry.

Source: Jiangsu Iron and Steel Industry Association


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