China cuts 120 mln tonnes of low-grade steel capacity in H1 – report

Posted on 05 July 2017
 

Source: Reuters

China closed more than 600 steel mills producing low-grade construction steel during the first half of the year, cutting capacity by about 120 million tonnes, the state-owned China Economic Daily reported.

China, the world’s largest steel producer, has been clamping down on production of low-grade rebar in a bid to cut excess supply and help tackle pollution.

Analysts estimate China’s total steelmaking capacity at about 1.2 billion tonnes, with an annual surplus of as much as 400 million tonnes.

Authorities plan to send inspection teams in August to check the results of efforts to halt steel output in small low-tech furnaces and prevent them from reopening, the state-backed China Metallurgical News said last week.

China aims to cut 50 million tonnes of steel capacity in 2017 – not including low-grade steel capacity – and said last month it had met 85 percent of the target by mid-June.



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