This year, China will continue to impose restrictions on production in heavy industry in the winter and toughen emissions estimates at steel mills when privileges to existing curbs are granted, a spokesman for the environment ministry said on Saturday.
Given the growing dissatisfaction with large-scale industrial shutdowns, Beijing promised to take more effective and targeted measures during its war against air pollution, introducing various levels of production cuts for companies depending on the emissions situation.
“The steel industry remains a major source of pollutants, despite improved emissions and production restrictions ... This year there will not be many first-class firms that will be exempt from restrictions,” said Liu Bingjiang, head of the atmospheric environment department. The Ministry of Ecology and the Environment (OIE), told at the industrial conference.
Liu said that MEE will involve industry associations to estimate emissions from mills to avoid fraud in the process of increasing emissions.
“We will severely punish the mills that play tricks, and introduce the highest level of production restrictions for them,” Liu said, adding that he noted that the investment and operating costs for upgrading emissions at the mills range from less than 20 yuan ($ 2.91) to 270 yuan per ton in steel production.
China, the world's largest steelmaker, ordered steel rolling mills in key regions, including Beijing-Tianjin-Hebei, Fenway Plain and the Yangtze River Delta, in 2020 to ensure compliance with extremely low emission standards by 2020.
This will include more than 60% of steel capacity in the country.
Companies that achieve "ultra-low" emission standards are eligible for exemption from the minimum level of production cuts during smog days.
However, the head of the China Metallurgical Association (CISA) at the same conference warned of insufficient “clean capacity” in the steel industry, despite a record high level of production.
“I hope that the government will be able to take fair measures as part of its campaign against smog, protecting and supporting clean and advanced steel producers,” said CISA Chairman He Wenbo.
In the first five months of this year, steel production in China increased by 10.2% compared with a year earlier and reached 404.88 million tons. According to him, 54% of the increase in production comes from small steel companies, the emissions of which are usually lower than that of their competitors of medium and large size.
“Mills are investing huge amounts of money to improve their emission levels ... they are real heroes in the war against pollution.”
