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The encourage, restrictions and elimination to the steel pipe industry restructuring

Environmental Protection   

 China’s
iron ore resource endowments are not high, mostly are low-grade refractory
grade ore and associated minerals form. Now in the situation of China iron ore
demand with high dependence on foreign, in order to strengthen the refractory
grade ore and associated minerals utilization of advanced technology research
and development, can maximize the extraction of valuable components in the
resources, improve resource utilization rate, saving mineral resources, help to
improve iron ore self-sufficiency rate and reduce dependence on foreign,
security operation to protect the steel industry. 

  However,
in the mean while of increasing refractory grade ore and utilization intensity of
associated minerals, do pay attention to environmental protection, should not
support the exploitation of ecological restoration which can not be achieved
after the lean ore, associated with mining projects.

Hot-dip galvanizing, color coating project access standards have improved.

According to incomplete statistics, as of the end of
2010, domestic hot-dip galvanizing line had
been put into operation more than 200, production capacity was about 45 million
tons, most of production line are with the low level of equipment, technology
is weak, the unit operation is low.

In 2010, China’s
actual consumption of hot-dip galvanizing was
about 16.46 million tons, low-end product was overcapacity. In order to control
the excessive growth of production capacity, increase productivity
concentration, improve access standards, the government set
the provisions
of the scale which is below 300,000 tons of hot galvanized sheet items were included in the
restricted volume.
    Color coated
sheet has the same situation to hot dip
galvanized sheet volume, the government set the provisions also improved
access to the same standard of the color coating,
the scale below 200,000 tons of color coated sheet items were included in the
restricted volume.

Cold-rolled ribbed steel bars will be phased out.

As of the end of 2010, China has put into cold-rolled
ribbed steel production enterprises 1238, total capacity of about 20 million
tons, 60% of production concentrated in the production scale of 5000 tons of
small businesses, which production line equipment level is low and high energy
consumption, production management is not standardized. In 2010, China’s output
of cold-rolled ribbed steel bars was 137 million tons, the situation of excess
capacity is more serious.

Given there is a certain demand in current cold-rolled
ribbed steel bars in the country, part of the advanced technical equipment,
high efficiency, low energy consumption of new cold-rolled ribbed steel bar
production equipment should be retained.

For the orderly phase out the backward work, currently
implement the phase-out of cold-rolled ribbed steel bar production equipment:
Since the promulgation of relevant regulations, have phasing out single-scale
production capacity 5000 tons and below the cold-rolled
ribbed steel bar
production equipment; since 2013 January 1, have
phasing out single-scale 10,000 tons of production capacity and the following
cold-rolled ribbed steel production equipment.
HRB335 will be fully eliminated by the end of next year

HRB335 grade hot-rolled ribbed
steel bars and steel grades HPB235 light circle had to stop using the
steel industry’s policies in the developed countries, plans are also proposed
to promote the application of above 400MPa grade level and hot-rolled ribbed
steel bars, to promote construction steel for upgrade. But China’s
construction sector is still widely used HRB335, HPB235 hot-rolled steel.

At present, China used to replace HRB335, HPB235¡¯s high-strength steel production processes
are mature, product quality and production capacity can meet the needs of the
construction market, eliminating out of HRB335, HPB235 conditions for steel
products have been available.
    To improve the level of steel,
reducing the amount of using construction steel, promote energy conservation,
the relevant provisions set the HRB335, HPB235 hot-rolled steel products as out
of class. Taking into account the use standard of steel and related national
standards are being revised and improved, there are still a lot in constructing
projects before the release of the relevant provisions. In order to ensure the
construction need, through consultation, set aside one year transition period
to the eliminated work. At the end of 2012 fully eliminated HRB335, HPB235 hot rolled bars.

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