China to cut crude steel production by 150 million tons

BEIJING - Speaking on the high-priority issue of excess capacity in China’s steel and coal industries, Premier Li Keqiang has announced that China will cut crude steel production capacity by 100 to 150 million tons. While the State Council did not specify any deadline for such cuts, the nation’s Cabinet pointed out in an official statement that China has cut is production capacity of crude steel by more than 90 million tons in recent years.

“Digesting overcapacity in the steel and coal sectors is an important measure to promote supply-side 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% to 804 million tons in 2015, the first time the industry reported negative growth in 34 years. Any newly-added capacity in crude steel and coal industries will be “strictly controlled”, the statement said, adding that the Government should be “fully aware” of the importance and challenges of digesting excess capacity. www.webershandwick.cn (ATI).