During a recent investigation, reporters learned that the steel industry is suffering from a double squeeze: on one hand, "thin profits" and "losses"; on the other, the even more troublesome "high pollution." How to eliminate the "ten-sided smog siege" with limited funds has become a difficult problem that needs to be solved.

　　Lack of motivation for environmental investment

　　At a recent meeting held by the Ministry of Environmental Protection on responding to heavily polluted weather in the Beijing-Tianjin-Hebei and surrounding areas, Ding Xiangyang, deputy secretary-general of the State Council, pointed out that as winter approaches this year, the possibility of heavily polluted weather in the Beijing-Tianjin-Hebei and surrounding areas is increasing. With the publication of the "Air Pollution Prevention and Control Action Plan" on September 12, the steel industry has become one of the key industries for environmental protection efforts.

　　Since the beginning of this year, Hebei Province has accounted for 5 to 7 of the 10 most polluted cities in the country every month, and the atmospheric environment situation is extremely severe. According to estimates by the Hebei Provincial Department of Industry and Information Technology, the comprehensive energy consumption of steel enterprises accounts for nearly 50% of the consumption of industrial enterprises above designated size in the province, making them truly major coal consumers and emitters.

　　As is well known, energy conservation, emission reduction, and meeting environmental standards require certain operating costs. Zhang Changfu, vice chairman and secretary-general of the China Iron and Steel Association, and other authoritative figures believe that steel enterprises have entered an era of thin profits, and the cost pressure on enterprises is enormous. With money even tighter, enterprises lack the motivation to invest in environmental protection.

　　Recently, relevant departments of the Hebei provincial government conducted investigations in Handan, Tangshan, and other places and learned that some steel enterprises have low efficiency and are only keeping production going to retain market share and reduce losses from equipment depreciation, labor, and financial costs.

　　Data provided by the Hebei Metallurgical Industry Association show that in 2012, the profit per ton of steel for steel enterprises in Hebei was only 85 yuan. If environmental protection equipment is used, the operating cost of environmental protection facilities increases by more than 100 yuan per ton of steel produced; if not used, a medium-sized steel enterprise can reduce costs by tens of millions of yuan each year.

　　A person in charge of a steel enterprise told reporters that environmental operating costs are high, and it is very cost-effective for enterprises not to act. If discovered, the maximum fine is only a few hundred thousand yuan, and even if penalized every month, it is still cost-effective. Therefore, some steel enterprises install environmental protection facilities only when they have to and operate them only when they have to, minimizing environmental costs.

　　Some large state-owned steel enterprises involved in environmental issues

　　The North China Inspection Center of the Ministry of Environmental Protection reported in March that 60% of steel enterprises in Hebei Province have environmental problems in operation, 70% of dust removal facilities are not operating normally, and 80% of production wastewater is discharged illegally; in addition to private steel enterprises, some large state-owned steel enterprises are also involved.

　　During interviews, some steel enterprise executives said that the current focus of environmental supervision is on whether enterprises have installed environmental protection and monitoring equipment, even down to specific brands or models; daily monitoring mainly relies on irregular inspections of equipment operation, with insufficient attention to environmental protection effects.

　　For example, the environmental protection department requires steel enterprises to uniformly install a certain type of dust net, which looks similar to the fencing around a tennis court and costs nearly 200 million yuan. To achieve the same effect of no dust, low-cost sprinkler irrigation can also be used, so that enterprises can use funds in more profitable areas.

　　"The market economy is a profit-driven economy. To reverse the unfavorable situation in steel environmental protection, we must respect market rules, use market methods, straighten out the interest mechanism, and make environmental protection profitable," said Liu Qiutong, head of Hebei Baofeng Steel Company.

　　Many steel enterprise executives believe that environmental standards should be implemented in both production and consumption. First, the environmental protection department should shift its supervision focus from "emphasizing equipment" to "emphasizing effects," and under the premise of setting standards, allow enterprises to choose their own ways to meet environmental standards; second, in government procurement, emphasis should be placed on selecting steel products and services that meet national green standards, and it should be explicitly stipulated that key projects can only use products and services from steel enterprises that meet environmental standards, forcing steel enterprises to develop in a standardized manner.