The new environmental protection law is forced to eliminate the production capacity. The environmental transformation of the steel industry needs 100 billion yuan.

Abstract On January 1st next year, the new environmental protection law, known as "the strictest in history", will be officially implemented. Liu Tao, a senior engineer at the Metallurgical Industry Planning and Research Institute, recently wrote that according to the requirements of the new environmental protection law, no steel company can fully achieve the standard...
On January 1 next year, the new environmental protection law, known as "the strictest in history", will be officially implemented. Liu Tao, a senior engineer at the Metallurgical Industry Planning and Research Institute, recently wrote that according to the requirements of the new environmental protection law, no steel company can fully achieve the standard discharge.

In order to meet the new emission standards, the total investment in implementing environmental protection transformation in the whole steel industry will need about 90 billion to 110 billion yuan. However, in the context of the current general losses in the steel industry, the enthusiasm of enterprises for environmental protection is not high. Zhang Jiawang, manager of Tangshan Ruitailong Iron & Steel Co., Ltd., told the reporter of China Times that there was no steel factory in the vicinity of Tangshan for environmental protection.

Zhu Xinchuang Steel analyst Liu Xinwei told this reporter that there are still some luck in the implementation of the new environmental protection law by steel companies. If the new environmental protection law is strictly enforced, the steel industry will be greatly affected, and some enterprises that are not environmentally friendly will be affected. It may even be eliminated.

100 billion transformation costs

After the new environmental protection law is officially implemented, environmental violations such as excessive discharges will be subject to penalties such as “day penalty, no capping”, “security detention, criminal liability”.

At the same time, from January 1, 2015, the buffer period for a series of new emission standards for the “Steel Sintering and Pellet Industry Air Pollutant Emission Standards” will also end. At that time, all steel enterprises will implement new enterprise pollutant emission limits. Values, steel companies in key regions will also implement more stringent special emission limits. Therefore, on January 1, 2015, the steel industry was also called the “big limit” for environmental protection in the industry.

Liu Zhenjiang, vice president of China Steel Association, said that compared with the new national standards, many enterprises pre-evaluate the current emission levels, and the environmental protection equipment level or process control of some enterprises is still not up to standard. According to the investigation of 298 steel enterprises in North China in 2013 by the Ministry of Environmental Protection, more than 70% of enterprises have exceeded the standard.

Liu Tao said that compared with the new standard emission limits, there are still different levels of pollution control levels in most domestic steel companies. It can be said that no steel company can fully achieve the standard discharge. For example, the new standard stipulates that the dioxin emission concentration limit of the sintering head and the electric furnace flue gas is 0.5 ng-TEQ/m3, and currently, except for the sintering machine equipped with a treatment facility such as an activated carbon adsorption device or a wet electrostatic precipitator. Most of the remaining sintering machines and electric furnaces did not take control measures against dioxins.

In this regard, steel companies need to carry out a lot of environmental protection, including the comprehensive purification of sintering flue gas, the comprehensive compliance of the blast furnace system, and the comprehensive upgrading of the steelmaking system. Taking Hebei Province as an example, the province requires that all of the sintering desulfurization facilities be completely dismantled. This will result in some desulfurization facilities that are cut corners and designed to be incapable of maintaining operation, and must be rectified or even reinvented.

How much does it cost to renovate a large area? Liu Tao calculated an account. He divided the renovation project into six categories: dust collector improvement, sintering flue gas comprehensive treatment, converter gas purification, dust control reform, sintering (pellet) desulfurization reform and wastewater treatment. Divided into 1-2 sub-categories, and then detailed the investment estimates for each sub-category, ranging from 5 billion to 20 billion yuan, and finally the total investment amount is: the whole industry implements the total investment in environmental protection transformation such as wastewater and waste gas. A total of about 90 billion to 110 billion yuan.

In addition, after implementing environmental protection reforms in accordance with the new emission standards, equipment maintenance, water and electricity media, labor costs, spare parts and other costs will be increased. If calculated according to the annual output of 800 million tons of steel, the annual environmental protection operation cost will be about 80 billion yuan.

Xu Xiangchun, director of the steel information department, told this reporter that there was a saying in the industry that only the sintering and desulfurization reform would increase the cost per ton of steel by 10-20 yuan.

Forced to eliminate production capacity

Such huge renovation costs have made steel companies feel pressure. Fu Xia, deputy secretary of the Kunming Iron and Steel Group Party Committee, said that steel companies have invested heavily in improving environmental protection equipment and increased costs. "Now we have to lose more than 200 yuan to produce one ton of steel."

At the same time, the steel industry is currently experiencing “cold winter”. In 2013, the average profit rate of the national steel industry was only 2.16%, and the loss was 23.4%. The profit rate of 77 key large and medium-sized iron and steel enterprises of China Steel Association is only 0.62%, and the profit per ton of steel is only tens of yuan.

Li Yidong, deputy general manager of Hebei Iron and Steel Group Tangshan Iron and Steel Group Co., Ltd. said that except for steel, the utilization rate of domestic steel is mostly below 80%, the utilization rate of cold continuous rolling capacity is only 73.8%, and the steel products are almost over-represented.

Liu Xinwei told this reporter that before the steel industry had held a seminar on the implementation of the new environmental protection law, many companies hoped to delay the implementation of the new environmental protection law and give the enterprises a buffer period. Chen Ping, deputy general manager of Angang Group [microblogging] publicly stated that the country should give the industry a time and standard for compliance, just like desulfurization of power plants, with a targeted, special fund to support.

At the same time, the amount of funds needed for environmental protection transformation is very large. There may be no problem when the industry situation is good. Now the profit rate is so low, bank loans are more difficult, and steel companies really have no money for environmental protection.

The same is true. Zhang Jiawang told this reporter: "The steel mills around Tangshan have not yet moved. To be honest, the money on environmental protection equipment is quite high now, and the benefits are not good. The billet price has just lost 60 yuan."

"Enterprises may have a chance to be lucky, and they hope that the law will not blame the public." Liu Xinwei said that he has not heard of the large-scale environmental transformation of the industry. According to Xu Xiangchun, for the new environmental protection law, iron and steel enterprises generally hold a wait-and-see attitude; because after all, they have not been implemented, and in the end, how can they be implemented, and whether they can be implemented, especially if the law enforcement standards of local environmental protection departments are consistent, many enterprises are still waiting to see.

Liu Xinwei said: "If the new environmental protection law is strictly enforced, the impact on the steel industry will be very large, and many enterprises will be forced to stop production and transformation. If this cost cannot be tolerated, some enterprises will even be eliminated. ”

However, Xu Xiangchun believes that this is also in line with the country's policy of eliminating excess capacity. The government hopes that by increasing the cost of environmental protection and raising the threshold of the industry, some weakly competitive enterprises will eventually withdraw from the market in order to achieve the goal of eliminating excess capacity.

“Not only the steel industry, but many industries will face similar situations,” Xu Xiangchun said.

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