The hottest steel production in China intensifies

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China's steel production exacerbated air pollution. Last year, the output increased by more than two times. A report released by Greenpeace East Asia in the UK last week said that although China plans to reduce steel overcapacity, China actually produced more steel last year, resulting in a sharp rise in air pollution in northern China, especially around Beijing. According to the report, the growth of actual production capacity is more than twice that of UK steel-making capacity

due to the use of coal, the increase in steel production also means that compared with the level in 2015, the greenhouse gas emissions of the industry almost certainly increased last year. Greenhouse gas emissions are the main factor behind the acceleration of climate change. Steel industry is the second largest emission industry of carbon dioxide, the main greenhouse gas; The first is power generation, which also mainly uses coal. China is the world's largest emitter of greenhouse gases, ahead of the United States

the report released last week shows that powerful state-owned enterprises and local officials, despite the serious overcapacity problem in the industry, still let steel enterprises continue to operate without economic benefits. As China's economic growth slows, local governments are under pressure to support factory operations and avoid domestic unrest

according to this report, 10 provinces in China have increased their steel production capacity. The biggest increases were in Shanxi and Hebei near Beijing, where air pollution was also among the worst in the world. The report said that only six provinces achieved a net reduction in production capacity

China United Steel, a Chinese consulting company, was entrusted by Greenpeace East Asia to do major research work for this report. The company's calculations are based on surveys and official documents, including documents from local governments

continue to promote high-quality development and innovative development. Since 2011, China's steel demand growth has been slowing, so officials promised to reduce steel production capacity

Officials said that efforts to reduce production capacity last year exceeded the target of that year. However, Zoomlion's research shows that officials did something when announcing the news - the reduced production capacity came from the discontinued factories. As a result, only 23million tons of production capacity was actually reduced

the closure of factories has reduced supply, while at the same time, the government's stimulus measures have led to a rise in short-term demand. The report says officials and companies have restarted some temporarily closed factories. This part of production capacity is 49million tons, equivalent to the total steel production capacity of Germany. China has also added 12million tons of new production capacity

according to the report, the net increase in operating steel production capacity in 2016 was 36.5 million tons. Among them, 80% of the growth came from three provinces or municipalities directly under the Central Government: Hebei, Shanxi and Tianjin

some policies of the government also contradict the established goal of reducing the domestic spodumene production with excess capacity. From 2013 to 2015, bank loans and government subsidies to the steel industry have increased. In 2016, the stimulus policy "brought short-term prosperity, which artificially led to the rise of steel demand and steel prices"

according to the report, most of the capacity cuts came from factories closed by central state-owned enterprises or private enterprises, which shows that local state-owned enterprises and local governments are protecting their own interests

Greenpeace's analysis of Beijing's air quality data shows that Beijing's air pollution control has been progressing, and the economic losses caused by metal rust each year account for about 2% of GDP, which is stable, but stagnated last year. In some months in the second half of 2016, the air quality was worse than that in 2015. In the first five weeks of 2017, the concentration of PM2.5, a particularly harmful particle, was almost twice that of the same period in 2016

in 2013, the central government announced the goal of reducing coal consumption in China's three major population centers, trying to improve its worst level of air pollution in the world, including Beijing and surrounding areas

last year's stimulus policy also led to a rise in coal prices, but climate change researchers said they expected data to show that China's overall coal consumption in 2016 was lower than that in 2015

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