The steel industry has a long way to go

China is a major carbon emitter in the world, and mild steel tube is one of the major carbon emitting industries. In 2019, the global total of carbon dioxide emissions related to energy and cement was about 36.4 billion tons, with China accounting for about 28 percent, or 10.17 billion tons, more than the United States, Europe and Japan combined. According to statistics from the Ministry of Ecology and Environment, in 2018, China's iron and steel industry's emissions of particulate matter, sulfur dioxide and nitrogen oxide were about 1.636 million tons, 683,000 tons and 929,000 tons respectively, ranking first among all industrial industries. Carbon emissions were only lower than those of the power industry, ranking second. Therefore, China's steel industry has a long way to go to achieve the "dual carbon" goal.

At the same time, China has also introduced relevant steel industry policies to actively promote the green, low-carbon and high-quality development of the steel industry. First, we will raise the level of high-quality development of the steel industry. The National Development and Reform Commission said that the "14th Five-Year Plan" period, will focus on five aspects to promote the adjustment of the steel industry structure: strict implementation of the ban on new production capacity regulations of Rectangular steel tube, promote the low-carbon and green development of the steel industry, promote the merger and reorganization of the steel industry, encourage the steel industry to optimize the layout, improve the quality of the steel industry development level. The Ministry of Industry and Information Technology "iron and steel industry capacity replacement implementation measures" (hereinafter referred to as "measures") since June 1 this year, the revised "measures" clear air pollution prevention and control of key areas strictly prohibited to increase the total iron and the capacity of carbon steel pipe.

Second, reduce pollution and carbon, and promote the transformation of ultra-low emissions in the whole industry with high quality. In April 2019, the Ministry of Ecology and Environment and other five ministries and commissions issued the "Opinions on Promoting and Implementing ultra-low Emissions in the Steel Industry" (hereinafter referred to as the "Opinions"), which pointed out that the country's new (including relocation) steel projects should in principle achieve ultra-low emission levels. By the end of 2020, significant progress has been made in the transformation of ultra-low emission of steel enterprises in key regions, and about 60% of the production capacity will be completed. By the end of 2025, the transformation of iron and steel enterprises in key regions to achieve ultra-low emissions will be basically completed, and the country will strive to complete the transformation of over 80% of its production capacity. Up to now, a total of 237 enterprises have completed or are implementing ultra-low emission transformation of 650 million tons of crude steel production capacity, among which 14 steel enterprises, including Shougang Qiangang, Shougang Jingtang and TiSCO, have completed the transformation and evaluation and monitoring of the whole process of about 95 million tons of Gi square steel pipe production capacity.

Third, mergers and restructurings to improve industry concentration. Promote the merger and reorganization of iron and steel enterprises in the region, fundamentally change the situation of "small and scattered" iron and steel industry in some areas, and improve industrial concentration.