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Print[Ferro-alloys.com]As traditional heating season of North China approached, frustrating haze might be aggravated. The government was strengthening environmental inspection. Many insiders pointed out that, most mills could only make slight profit currently and many could not bear the burden of environmental cost, so a large number of steel mills would be eliminated in the future.
Science and Technology Division of Ministry of Environmental Protection disclosed recently over 70% of Chinese mills did not discharge pollutant according to the standard or discharge over standard.
It was estimated that to meet national demand on atmospheric pollutant emission limit, RMB 1 billion must be invested for 10 million mt of steel. That meant pollution treatment for one mt of steel would be RMB 100. According to this calculation, national environmental protection investment would reach RMB 72 billion as annual steel output of China was 0.72 billion mt.
Environmental cost of small private mills would increase gradually and their cost advantage over large mills would shrink. In the long term, small private mills with backward management and low profitability would be obsoleted in market competition.
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