China continues to promote the iron and steel industry to eliminate excess capacity and withdraw as a whole of the three iron and steel enterprises in Tianjin.

According to reports, according to Wang Wenmei, deputy director of the Atmospheric Environment Department of the Tianjin Municipal Bureau of Ecology, three iron and steel enterprises in Tianjin (Tianjin heavy Jiangtian heavy Industry, Tianjin Tianfeng Iron and Steel, and Tianjin Metallurgical Group) have withdrawn as a whole, and the four remaining iron and steel enterprises (Tianjin Rongcheng United Iron and Steel Group, Tianjin Tiangang United Special Steel, Tianjin Iron and Steel Group, Tianjin Steel Pipe ironmaking) have fully implemented ultra-low emission transformation. At the same time, the upgrading and integration of 20 industrial parks has been completed, and the "park besieged city" and "iron and steel besieged city" have been completed in an all-round way.

According to SMM, Tianjin Tianzhong Jiangtian heavy Industry, Tianjin Tianfeng Iron and Steel, and Tianjin Metallurgical Group rolled Sansan Steel, which were shut down and eliminated last year, have no obvious impact on the local steel market supply in the near future.

In recent years, China has continued to promote iron and steel industries to eliminate excess capacity in order to protect the ecology and deal with climate change and do a good job of carbon peak and carbon neutralization. In May, the National Development and Reform Commission launched a "look back" inspection of steel production capacity in 2021, strictly reviewing project access, strictly controlling new steel excess capacity, and stepping up the investigation of "strip steel" production enterprises.

As for the future trend of steel production capacity operation, he Wenbo, executive president of China Iron and Steel Association, said that the current steel industry capacity scale is sufficient to support future steel demand, and if the capacity scale is blindly expanded on the basis of now, the consequences will be very serious. Do your best to maintain the current good situation, even if there is periodic overcapacity due to reduced demand in the future, it will be relatively easy to deal with. In addition, steel production capacity should not only be controlled but also updated with the upgrading of demand. Industry capacity management should shift its focus from total quantity control to demand upgrading and whether it can meet the new demand brought about by the continuous optimization and upgrading of downstream product structure.