Chinese steel mills prepare for stricter smog rules

Steel mills in Tangshan, China's largest steel city, are rushing to install equipment to meet new "ultra-low" emissions targets by October 31, as pollution control measures threaten to further shock the sector.

According to analysts who tracked more than 150 sinter plants in the city affected by the new regulations, only a small fraction of them have installed technology that removes sulfur, nitrogen and dust.

“Everyone is trying to speed up the project (renewal) ... However, the time is very busy,” said the environmental manager at Hebei Donghai Special Steel Co, a privately held company with an annual capacity of 10 million tonnes of steel.

The Environment Department said in February it would provide tough new emissions at steel mills, but did not provide details.

According to research by analysts at Huatai Futures and Guosen Securities, until last week, only five of the 152 sintering plants in Tangshan that need modernization achieved stricter emissions targets.

A lot is at stake for factories. Those who succeed in time will be exempted from smelting restrictions during the winter heating season.

If they miss the deadline, they will have to cut production, and the government has warned that some plants may be closed.

For the second year now, China will force steel mills, aluminum smelters and other heavy industries in the dirtiest northern regions to cut winter output to counter the rise in emissions from the country's coal-fired power plants due to increased heating demand.

Tangshan Delong Steel Co Ltd, a private factory with a capacity of 2.4 million tonnes per year, began renovation work last year and is one of the first to meet the new standards.

Steel mills in Tangshan, China's largest steel city, are rushing to install equipment to meet new "ultra-low" emissions targets by October 31, as pollution control measures threaten to further shock the sector.

According to analysts who tracked more than 150 sinter plants in the city affected by the new regulations, only a small fraction of them have installed technology that removes sulfur, nitrogen and dust.

“Everyone is trying to speed up the project (renewal) ... However, the time is very busy,” said the environmental manager at Hebei Donghai Special Steel Co, a privately held company with an annual capacity of 10 million tons of steel.

The Environment Department said in February it would provide tough new emissions at steel mills, but did not provide details.

According to research by analysts Huatai Futures and Guosen Securities, until last week, only five of the 152 agglomeration plants in Tangshan, which