(Yicai Global) July 31 -- Despite Beijing's strict ban on "ferrous waste and scrap steel," officials found some manufacturers illegally attempt to resume production. Several cases have been exposed in Tianjin in the north and Hunan province in the south during an inspection last week.

A government inspection group in Tianjin identified two illegal "ferrous waste and scrap steel" manufacturers upon tips from local citizens, while an inspection group in Hunan caught a manufacturer restoring three production facilities for scrap and waste steel during an on-site inspection. All illegal facilities have been demolished, state-run Xinhua News Agency reported.

Premier Li Keqiang emphasized zero tolerance for such offenders and called for strict supervision accountability of local governments during a keynote speech in the past.

"Ferrous waste and scrap steel" refers to steel made from iron and steel scrap in the line-frequency or medium-frequency induction furnace. The steel product is of inferior quality and the production process causes severe pollution in the environment. Beijing has repeatedly banned such production. However, with the recent rebound in steel prices, some facilities shut down previously try to sneak back to production, Xinhua said.