(MENAFN) China is closely looking into reducing steel production capacity by up to 100-150 million tons throughout the following five years, based on the latest data.
Basically, no new steel schemes will be licensed, dated plants will be closed, and those which have ceased operations but have not formally gone bankrupt will be eliminated.
Crude steel production volume is nearly 1.2 billion tons with production dropping 2.3 percent last year to 804 million tons, according to China Iron and Steel Association.
China's steel industry, the world's largest, has been burdened with overcapacity for years, and the glut has been felt even more in the last 2 years as world steel demand slipped.
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