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The demand for steel products in South China has been increasing due to rapid economic development. However, the domestic production does not meet the demand.

New production centres set up in the South China where near ports, so as to fulfil the demand of steel products and the access to raw materials will be easier with the good railway infrastructure.

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With the government policy of " Open Policy ".

It encouraged more overseas investors to China and invest in the coastal regions. The increasing number of investors improved the China's economic status and the technologies of the iron and steel industry.

Therefore, the demand of raw materials for steel production is reduce and replaced by scarp iron and steel. Also, products can be easily export to other countries by the well-developed port facilities.

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With the government policies of " Having some regions developed first ".

Government chose the coastal regions to develop first. It encourages the industrial development in the coastal regions.
Also, coastal regions are large cities which have huge population and with the booming construction industry. It demand a larger amount of steel products, such as vehicles, electrical applience.

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With the government policy, " moving industry into the inland regions ".

It can prevent the iron and steel industry centres in the coastal regions from the attacks of the enemies during wars.
Moreover, many coalfields and iron ore fields were located in the inland. However, the transport system between these two places were not well-developed.

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Under the government policy, the Five-year Plans.

The government wanted to boost the local economic development and solve the problem of overpopulation in the coastal regions by shifting iron and steel production centres into inland.

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Anshan can easily obtain raw materials from the coal mines and iron fields nearby and it has a large piece of flat land for the production plants development
So as to support the heavy industry in the north-east area, it requires huge amount of steel with the support of railway network to transporting efficiently.