China’s biggest steelmaking province to close more than 14 MT capacity this year

Hebei, China’s top steelmaking region, has pledged to shutdown a total of 14.22 million tonnes of capacity in 2016 as part of the country’s efforts to tackle a huge glut in the sector, Xinhua news agency said.

The capacity to be shutdown is just over 1 percent of China’s official steel making capacity of 1.13 billion tonnes.

Hebei – which produces almost a quarter of China’s steel — would first close 8.2 million tonnes before November and the rest by the end of the year, Xinhua said. Most of the mills lined up for closure are situated in the cities of Tangshan, Handan, Qinhuangdao and Langfang.

The province, which surrounds China’s capital Beijing, has already shut 41.06 million tonnes in 2014 and 2015, according to the provincial steel industry association.

China has said it plans to cut steelmaking capacity by 100 million to 150 million tonnes in the next five years, with the industry facing widespread losses as a result of an economic slwodown.

 

Leave a Reply

Your email address will not be published.