Blog | Homepage | Favorite | Sitemap

Visit our Metals News site

Metal Prices, News, Charts etc. Including Vanadium, Titanium, Silicon, Tungsten, Manganese, Chrome ...

 

Other Company Directory

Contact Info

MetalNewsNet.com
Phone: +86-28-6676 5966
Fax: +86-28-6676 5966-1
metalnewsnet@gmail.com

Location: Home - Metallurgy - Copper - News

23 Jun : Fragmented steel sector in China to see production cutbacks
Time：2010-6-23 9:35:12    Author：Metalnewsnet    Clicks：0 Times    Tel：+86-28-6676 5966

Metalnewsnet 23 Jun ：

China Daily quoted industry experts said around 300 million tonnes of excess production capacity will be cut from China's fragmented steel sector as consolidation forges ahead.

The State Council released a document recently, saying steel projects built after 2005 will be closed.

Mr Xu Li an analyst from the Beijing based Lange Steel Research Center said China crude steel capacity exceeded 700 million tonnes in 2009 compared to 414 million tonnes in 2005, so around 300 million tonnes of production capacity will be cut.

He said that "Although the document doesn't specify these projects, consolidation will be guided by principles such as regionalization, mutual complementarily and diversification."

Mr Xu said "This is the most comprehensive document on steel industry consolidation released this year, indicating the government's determination to rein in overcapacity and upgrade the sector."

The document said the government also wants the nation top 10 steelmakers to account for more than 60% of the country total steel capacity by 2015 up from 44% in 2009.

The government will withhold approval for any new projects aiming to expand capacity by 2011. It also proposed that the Ministry of Environmental Protection should strictly verify environmental assessments and local governments should not approve construction projects or provide land permits to industries with excess production capacity.

The document said the government would encourage domestic steelmakers to set up iron ore bases and establish plants overseas. It also said the government is studying measures to reduce domestic iron ore miners' production costs and expand domestic supply capacity. It also called for the concentration of iron ore imports to regulate the iron ore trade.

The document followed the government's announcement in April that small steel mills with blast furnaces of less than 400 cubic meters will cease production by the end of next year.

The central government issued a stimulus package for the steel industry in January 2009 which encourages big mills to merge with smaller rivals to create cohesive steel groups.

(from China Daily)

 
 
To contact MNN staff for this story: Kylin at +86-13228199166 or metalnewsnet@gmail.com
Article: 23 Jun : Fragmented steel sector in China to see production cutbacks
Keywords: Home - Metallurgy - Copper
Channel: Metal - News
Posted: 2010-6-23 9:35:12 by Metalnewsnet
This article comes from Metalnewsnet.com,If you have any questions,Please Click here to contact us.

More Related News: