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China's steel industry has fallen into a more vicious circle.
On the one hand, the state regulation and control policies have been issued frequently to increase the capacity of eliminating backward production; on the other hand, the iron and steel enterprises have reorganized and built new projects in the name of eliminating backward production capacity, and the capacity scale has expanded several times. When will China's iron and steel production capacity become more and more redundant?
As early as 2006, the National Development and Reform Commission had issued a request that all the small blast furnaces below 200 cubic meters be eliminated in 2006, the small blast furnaces below 300 cubic meters and the converters below 20 tons be eliminated in 2007. On June 17, last year, the General Office of the State Council issued the "Several Opinions on Further Enhancing Energy Saving and Emission Reduction and Accelerating the Structural Adjustment of the Iron and Steel Industry", proposing that "except for the projects approved by the State for preliminary work, no steel projects with expanded production capacity will be approved or filed until the end of 2011".