INDUSTRY

Yu Xi China may exceed the target to pare steel production capacity by 45 million tons this year, the China Iron and Steel Association ( CISA) said at a press conference on Thursday.

Efffffffffffffffffffffffffffffffffforts to trim excess capacity seem to have been effffffffffffffffffective, as the domestic steel industry had met about 80 percent of its annual target as of September, the CISA noted.

The Chinese authorities have made efffffffffffffffffffffffffffforts in the area of environmental protection and credit tightening for underperforming steel companies as they aim to reduce steel output, Chen Li, a research director specializing in the sector at East China’s Jiangsu Province- based Huatai Securities, told the Global Times on Thursday.

The merger of some steel companies will help in cutting output, Chen said. For example, Shanghai- based Baosteel Group and Wuhan Iron and Steel ( Group) Corp got approval from the State Council, China’s cabinet, to merge in September.

But there are also some problems. More than 100 large and medium- sized steel companies track were the major ones cutting output. Some ducers with outdated capacity are maintain which is harmful for the industry’s upgr said.

The country will still face great pressure solete capacity next year, according to the C

From January to September, China’s cr