China's steel sector has to face up to tougher environmental and emissions rules from January, according to the chairman of state-controlled producer Baosteel, Xu Lejiang.
Steel mills will have to adjust to a "new normal" in complying with environmental and pollution controls, Xu said, with even relatively well managed companies potentially finding their operations in peril if they do not strictly adhere to the environmental laws. Emissions standards will be particularly stringent for steel mills operating in Beijing, Tianjin and the Yangtze river delta, he added.
China has approved changes to its environmental protection law to allow for higher fines for polluting firms and the seizing of property. The new environment regulations will be a fundamental shift in Chinese policy, according to analysts, with environmental concerns no longer secondary to economic development as Beijing seeks a better balance.
The Chinese government has already been pressing provincial governments to shut down outdated blast furnaces, sintering plants and coke ovens in a bid to cut air pollution and excess capacity in the steel sector.
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