International Steel Mills
August 1, 2017
China Wants Capacity Cuts Recognized
Written by Sandy Williams
China cut crude steel capacity by 42.39 million metric tons in the first half of 2017–about 84 percent of its 50 million metric ton goal for the year–but steel production rose 4.6 percent to 419.75 million tons during the same period. Shutdowns to capacity do not include the removal of 100 million tons of illegal low-grade steel production in the first half.
Steel prices in China benefited from the capacity reduction, but Jin Wei, president of the China Iron and Steel Association, warned producers that steel profits continue to be low as the industry struggles with steep cuts to exports resulting from numerous foreign trade restrictions. Steel exports from China fell 28 percent in the first half of the year, according to customs data.
