The production capacity put into operation in 2020 is much less than the expected 100 million tons due to COVID-19 and the capacity replacement policy. It is expected that 46.99 million tonnes of blast furnace capacity will be commissioned in 2020, of which 40.07 million tonnes will be excluded with a net increase of 6.96 million tonnes. Part of the capacity was dismantled at the end of 2019, and part of the capacity is expected to be decommissioned in 2021. Meanwhile, some steel projects have been approved in the past but have not been built, such as the Fangchenggang project for Liuzhou Iron and Steel. For 2020, this part of the pig iron production capacity is new. The new capacity includes the resumption of production at the steel mill, which has been suspended for more than two years. In October 2020, the blast furnace with a volume of 1800 m³ was resumed. with a capacity of 1.53 million tons. This explains the high prices for iron ore in 2020.
The volume of blast furnaces dismantled from January to October exceeds the volume commissioned, while the capacities commissioned from November to December are larger than those dismantled.
New production facilities for the production of blast furnaces are concentrated near the ports in Hebei and Guangxi, and the abandoned ones in Hebei, Jiangsu and Tianjin.