He Wenbo, member of the National Committee of the Chinese people’s Political Consultative Conference, Secretary of the Party committee and executive chairman of China Iron and Steel Industry Association, said in a recent media interview that China’s iron and steel industry has gradually grown into one of the industries with sufficient support for national economic development and significant international competitiveness under the environment of high-level reform and opening-up and under the guidance of new development ideas. The dream of becoming an iron and steel power is becoming a reality step by step. However, in recent years, the international situation has changed, the market is turbulent, and the supply of bulk commodities and main raw materials is becoming more and more unstable. China is a large producer and demander of iron and steel. The weakness of the upstream supply chain of iron and steel has posed a threat to the development of iron and steel and the industrial foundation.
According to he Wenbo, overseas mines, domestic mines and scrap are the three main sources of ferrite resources in China’s iron and steel industry. In 2021, China’s crude steel output was 1.035 billion tons, imported iron ore 1.124 billion tons, domestic iron concentrate 285 million tons, and steel scrap consumption reached 230 million tons. In that year, 61% of the iron resources required for crude steel production came from imported iron ore, up from 62% in the previous year.
He Wenbo said that in the coming period, China’s steel demand intensity will remain at a high level, and the external dependence of iron resources is too high, which will have an adverse impact on the stable operation of the steel industry chain and supply chain, and measures must be taken to fundamentally improve it. To this end, he proposed to launch the “cornerstone plan”, starting from the three main sources of iron resources, clarify the three nodes of the guarantee objectives (2025, 2030 and 2035), clarify the two-level promotion system (national competent departments and competent departments in key regions), and clarify the two types of implementation subjects (iron and steel enterprises and professional mineral resources enterprise groups).
It is understood that he Wenbo submitted the proposal on improving the security of national important metal resources across the dual constraints of resources and environment at the two sessions last year. Over the past year, there have been new ideas and plans for various work. The proposal mainly includes three aspects:
First, open up a green channel and strengthen China’s iron ore development. The main suggestion is to reduce unnecessary administrative control and simplify the current lengthy and cumbersome approval process according to the principle of marketization. The regional governments of China’s important metallogenic belts should take responsibility and open a green channel, so that the market subjects can make investment projects and lead the development process according to the market law and market demand. Among them, according to the development status of China’s mining industry, special suggestions are also put forward on how to encourage deep mining of metal mines.
Second, strengthen international cooperation and promote the process of overseas iron ore development. In the iron resource supply solution, making good use of both domestic and foreign resources is the work direction we should always adhere to. This principle should be adhered to in the development of metal resources, including iron resources. While fully tapping China’s resource potential, it is necessary to have clear goals and tasks to increase international cooperation, accelerate overseas development and diversify the supply of mineral resources.
Third, make good use of scrap resources and speed up the recycling of scrap. In the long run, this is the pillar to change the composition of China’s iron resources. At present, the recycling application of scrap steel reaches 230 million tons per year, with an annual increment of more than 10 million tons. On the one hand, it changes the structure of iron resources and reduces the external dependence of iron resources; On the other hand, with the increase of the proportion of scrap steel, carbon emissions will be greatly reduced. We should further optimize the policy environment conducive to the development of scrap industry, especially focus on cultivating leading enterprises in the industrial chain of scrap recycling processing and utilization. They are resource guarantors and green contributors. We have the responsibility to create a policy environment for their growth and growth.
He Wenbo said that the key to the second proposal of the two sessions is to clarify the goal, path and implementation subject. Several CPPCC members participated in the discussion process of this proposal. In short, the iron ore problem has attracted top-down and all-round attention. With the more unified understanding of resource security, clearer objectives and plans, and clearer measures and paths, it is believed that the measures related to the protection of iron and steel resources will be gradually implemented, The problem of resource shortage that affects or even threatens the healthy development of the iron and steel industry will be gradually alleviated until it is solved.
