Steel capacity shift to coastal regions is general trend

Whether Steel Industry Adjustment and Restructuring or the Steel Industry Development Policy in revised stressed that steel capacity will shift to coastal regions. "it is a big trend", Li Xinchuang, director of Planning and Research Institute Ministry of Metallurgical Industry told reporters.

With the historical reasons, most steel mills of China are located in cities presently and the layout is very unreasonable. Currently, the situation of oversupply is very serious in North of China and other mainland regions, while the coastal areas in the south with the booming demand are lack of production, which lead large quality of iron ore and steel to transport to and fro. The long-distance transportation not only added logistical cost, but also enhanced the contradiction of railway transport. Coupled with the pollution problems and urban expansion, it is the most urgent problem for steel enterprises to shift capacity to coastal areas.

The layout of Japan's steel enterprises has a significant reference. The firms mainly lay in coastal regions and have great cost advantage in the obtaining of resource and energy, so the global competitiveness is very strong.

Therefore, Steel Industry Adjustment and Revitalizing proposed to promote the removal of urban steel mills to decrease environmental pollution. Till 2011, the capacity of steel enterprises along the sea will account for more than 40% of total production nationwide and the industrial layout is optimized apparently. The revising Steel Industry Development Policy also put forward that the unreasonable layout of steel industry will be improved till 2015 and the layout will be in line with the resource supply, transportation layout and market supply & demand in 2020.

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