SHANGHAI, Apr 12 (SMM) — Shandong province recently set air quality targets for 2021 and the "14th Five-Year Plan" period, aiming to eliminate 18.76 million mt of steelmaking capacity and 13.97 million mt of iron-making capacity. Shandong also encourages blast furnace-converter enterprises to transform into electric furnace enterprises. By 2025, more than 10% of blast furnace-converter enterprises will be transformed to electric furnaces. Coking capacity will be reduced by 2.95 million mt. About 15.2 million mt of local oil refining capacity will be shut down. The output of local oil refining products will be reduced by more than 8% compared with 2020.
According to SMM statistics, as of the end of 2020, the steelmaking capacity in Shandong was about 89.38 million mt and ironmaking capacity was about 83.21 million mt. In order to meet the production reduction target by 2025, iron ore demand will be reduced by about 23.75 million mt. At the end of 2020, the blast furnace capacity was approximately 75.87 million mt and the electric furnace capacity was approximately 13.51 million mt. By 2025, the electric furnace capacity will increase by more than 7.59 million mt.
