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China steel capacity to be brought below 1billion tonnes by 2025 - CISA President

Steel News - Published on Mon, 21 May 2018

Image Source: Express Tribune
Global Times reported that Yu Yong, president of the China Iron and Steel Association (CISA) and chairman of the State-owned Hebei Iron and Steel Group said that China will shut down more outdated steel plants and bring total capacity to less than 1 billion tonnes by 2025 as the demand for steel is set to decline gradually. He said "On the basis of China's achievements in cutting capacity, China will use methods such as the law, market forces, financial instruments and also mergers and acquisitions to continue easing overcapacity.”

He said China would aim to keep utilization rates at around 80 percent. They fell to less than 70 percent in 2015.

He said “As much as 120 million tonnes of annual crude steel capacity had already been closed. China aims to close another 30 million tonnes of capacity this year, and it has also shut down around 100 million tonnes of illegal low-grade steel used largely in construction.”

He added "In the future, China's overall steel demand will fluctuate downward and overcapacity is likely to persist for a relatively sustained period of time.”

Source :

Posted By : Amom Remju on Mon, 21 May 2018
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