China considers fund to manage steel output cuts

A fund to cut excessive steel output is being considered as China makes reducing overcapacity one of its top priorities in the next five years, the China Daily reported an industry association as saying.

The China Iraon and Steel Association said the steel industry will be chief among a number of industries that will have to slash production amid weak demand in the coming years, and the fund was being considered for that purpose.

It did not give details.

Crude steel output fell 2.23 percent in the first 10 months of this year to 675 million tonnes and only 87.5 percent was used in this same period, China Daily said. The excessive stockpile has dragged down prices and hurt profits.

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