The purpose of the inspection is to prevent steel companies from violating a ban on low-grade steel made from scrap metal or rebuilding excess capacity that has been eliminated, said Shui Hyunyon, an official with the National Development and Reform Commission (NDRC).
The inspection will be organized by an inter-ministerial unit, staffed by staff from 25 government agencies and industry associations.
This year, China plans to cut its inefficient steel capacity by 30 million tonnes. The government's efforts will focus on getting rid of "zombie firms" in the industry, Shui said at a forum on Saturday.
Reducing overcapacity in bloated sectors such as steel and coal has been on the government's agenda over the past several years as production volumes exceeded company revenues and boosted the economy.
With the progress in downsizing capacity, steel prices rose in the past year, resulting in increased profits for producers and some of them would like to resume abandoned capacity. The country also stopped producing 140 million tonnes of low-quality steel from scrap last year.
In 2016 and 2017, the country cut more than 120 million tons of steel capacity, 80 percent of the 150 million tons cut by the government for the 2016-2020 period, Luo Tiezhun, an official from the Ministry of Industry and Information Technology, said in the forum.
China to inspect steel production facilities from May to June
|
Azovpromstal® 3 April 2018 г. 11:43 |
