Steel pro­duc­tion to be cut by 100 to 150 mil­lion tons

China Daily (Canada) - - NEWS CAPSULE -

Chi­nese Premier Li Ke­qiang has re­it­er­ated the ur­gency and the govern­ment’s re­solve to cut ex­cess ca­pac­ity in steel and coal in­dus­tries, as the coun­try strives to re­struc­ture its econ­omy.

“China will cut crude steel pro­duc­tion ca­pac­ity by 100 to 150 mil­lion tons,” ac­cord­ing to a state­ment is­sued on Sun­day af­ter an ex­ec­u­tive meet­ing of the State Coun­cil chaired by Li.

The State Coun­cil didn’t spec­ify the dead­line for such a cut, but pointed out that China has re­duced its pro­duc­tion ca­pac­ity of crude steel by more than 90 mil­lion tons in re­cent years. China will re­duce the pro­duc­tion ca­pac­ity of coal by “a rel­a­tively large mar­gin,” ac­cord­ing to the state­ment.

“Di­gest­ing over­ca­pac­ity in steel and coal sec­tors is an im­por­tant mea­sure to pro­mote the sup­ply­side struc­tural re­forms,” the state­ment said, adding that the process will de­liver the in­dus­tries out of trou­ble and achieve up­grad­ing.

China’s pro­duc­tion of crude steel fell 2.3 per­cent to 804 mil­lion tons in 2015, the first time the in­dus­try re­ported neg­a­tive growth in 34 years.

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