China Cuts 35 Million Tonne of Crude Steel Capacity in 2018

Argus reported that according to the governmental 2018 work report, which will be presented at an annual conference of lawmakers in Beijing on Tuesday, China has exceeded its crude steel capacity reduction target for 2018 by around 17% by eliminating 35 million tonne capacity last year against a target of 30 million tonne. China had earlier indicated it may opt for a steel capacity reduction target of around 20 million tonne for 2019, although it had achieved its 13th five-year economic plan, 2016-2020 steel capacity reduction target of 150 million tonne in 2018 itself. But with most redundant capacity already eliminated, China may focus on capacity replacement projects, mergers and acquisitions of smaller mills and shutdowns of chronically loss-making zombie mills over the next few years to bring its steel sector in line with its capacity and emissions control objectives.