Construction Of Reverse Logistics System For Steel Enterprises In Henan Province Under Circular Economics

With the improvement of science and technology and the advancement of industrialization after the establishment of China, the steel industry has achieved rapid development in our country. But the extensive development pattern of "high input, high consumption, high pollution, low output "in steel industry has brought a series of problems such as resource depletion and environmental pollution, which hindered the sustainable development of steel industry. So developing circular economy with principle of "reduction, reuse, recycle" is particularly important.Henan province is China’s major steel-producing province, extensive development pattern makes the province’s resources and environment become fragile and all sorts of contradictions and problems are also increasingly prominent. As a pilot province of the country’s development of circular economy, the development of circular economy in the steel industry can bring the steel industry in Henan province a efficient and green development, finally realize the harmonization of economic, environmental and social benefits. Based on the development of reverse logistics as the breakthrough point, increase resource utilization, reduce energy consumption, reduce environmental pollution and improve the economic benefit, so as to realize the sustainable development of steel industry in Henan province.Firstly, this article elaborates the basic theory of circulation economy and reverse logistics, providing a theoretical basis for the article. Secondly, the article combines with the current development of steel enterprises in Henan Province to build the necessity and feasibility of reverse logistics from the Reverse Logistics drivers, principles and other aspects. After that, the article gives a detailed description for the founding of the internal reverse logistics system and external reverse logistics system in the circular economic environment, and then describes the establishment of a mathematical model of the steel enterprises reverse logistics: the generation model and consumption model of scrap iron and steel. Through the analysis of the generated model we know that only improving existing external steel enterprise reverse logistics system can we improve operation efficiency, increase the scope and strength of the recycling of scrap steel, improve the recovery rate of scrap steel, and then improve the comprehensive utilization of waste iron and steel as a renewable resources into the iron and steel production; Through the analysis of the consumption model we know that only raising scrap ratio can we increase the sufficient consumption of scrap steel as raw materials. Therefore the steel enterprises in the province need to change the traditional converter steelmaking to electric furnace steelmaking in order to improve business efficiency. Finally, using PEST analysis method from the political, economic, social and technology four aspects analyzes the building macroscopic support system of reverse logistics system in steel enterprises in Henan province.