BackYou are here  :  Home - News - Industry News

New environmental law to affect Chinese steel industry

It is reported that China's revised Environmental Protection Law which some have dubbed “the strictest in history” will take effect on January 1st.

According to Mr Liu Tao, a senior engineer at the China Metallurgical Industry Planning and Research Institute, no steel manufacturer in China has met the requirements stipulated in the new law so far.

Mr Liu said that “The entire steel industry would have to spend CNY 90 to CNY 110 billion on improving their facilities in order to meet the requirements. The improvement projects are also expected to raise operation costs by CNY 80 billion per year due to maintenance fees and other expenses.”

The report said that yet at a time when the steel industry is experiencing a slowdown, steel producers have shown little interest in such projects though. In 2013, the average profit margin of China's steel industry was only 2.16%, with 23.4% of manufacturers operating at a loss.

Mr Li Yidong vice president of Hebei-based Tangshan Iron and Steel Group, said that nearly all steel products in China are in a state of oversupply, with the production utility rate of most products standing at below 80%.