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China to Halt Capacity Swaps Project Approvals in Steel Industry

Steel News - Published on Fri, 24 Jan 2020

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Reuters reported that National Development and Reform Commission announced that China will stop approving new capacity and capacity swaps for steel projects from January 24, as the government wants to review all the projects first as the government has found instances where some steel mills have expanded production capacity under the guise of capacity swaps. NDRC said “China will also carry out inspections to review all capacity swap projects approved since 2016 and shut any illegal capacity. Local authorities must strictly implement the rules and tighten management and must resolutely correct the mistakes and punish the responsible people.”

The NDRC also asks steel mills to speed up installation of environmental equipment to ensure the emission to meet the strict standards in mills-clustered northern China.

Crude steel production in China climbed to a record high just shy of 1 billion tonnes last year despite Beijing’s efforts to ease oversupply as some mills used swaps as an excuse to add new capacity.

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Posted By : Rabi Wangkhem on Fri, 24 Jan 2020
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