On December 6, the MIIT released the second batch of standard-compliant enterprises in the steel industry as part of efforts to address overcapacity in the steel sector. The public notice period runs from December 6 to 26, 2013.

　　The second batch includes a total of 115 steel enterprises nationwide, with 35 enterprises from Hebei Province, the country's largest steel-producing province, making the list.

　　"Standard-compliant steel enterprises" are commonly known as the "whitelist," an important tool used by the MIIT to manage overcapacity in the steel industry.

　　It is reported that the MIIT is establishing a "three-in-one" management system for the steel industry, including the issuance of the "Standard Conditions for the Steel Industry" and the formulation of the "Measures for the Administration of Standard-Compliant Steel Enterprises" and the "Implementation Guidelines for the Standard Conditions for the Steel Industry."

　　Among them, the "Standard Conditions for the Steel Industry" sets out standard requirements for steel enterprises in six aspects: product quality, environmental protection standards, energy consumption, process equipment, production scale, and safety and health.

　　For enterprises that meet the "Standard Conditions for the Steel Industry," the MIIT, together with relevant departments, will support their development, including promoting mergers and acquisitions, implementing technological transformation, and achieving structural adjustment and upgrading. For enterprises that do not meet the "Standard Conditions," however, the MIIT, together with relevant departments, will use a combination of economic, legal, and necessary administrative measures—such as differentiated electricity pricing, fiscal incentives, and performance accountability—to gradually squeeze their room for survival, force them out of the market, and thereby resolve overcapacity.

　　The first batch of standard-compliant steel enterprises was disclosed at the end of April this year. In the first half of next year, the MIIT will release the third batch of standard-compliant steel enterprises. It is expected that the three batches of "whitelist" enterprises will cover 80% to 90% of China's current total steel production capacity. After that, the MIIT will conduct dynamic standardized management of the enterprises.

　　Overcapacity has been a chronic problem in the steel industry for many years. From January to October this year, the average profit of the steel industry was only 0.84 yuan per ton of steel.