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Two main tasks of the steel industry revealed

By Jing Shuiyu | chinadaily.com.cn | Updated: 2017-04-14 13:52

Experts have revealed the steel industry's biggest tasks for the year, so far, have been deleveraging and cutting overcapacity in the sector.

Liu Zhenjiang, director of the China Iron and Steel Industry Association, said the steel industry, in addition to further slashing excessive capacity, should promote an industrial restructure through these types of actions.

Li Xinchuang, director of the China Metallurgical Industry Planning and Research Institute, agreed and added steel producers should optimize operations, as well as seek green, clean, low-carbon productions.

Li said a modern steel producer should aim to produce high-quality products, enhance energy conservation, and improve air-quality.

Representatives of the National Development and Reform Commission said China aimed to reduce the nation's steel capacity by50 million metric tons this year, and added it would continue to drive the sector into 2018.

The target was built on the progress China made in 2016, cutting 65 million tons of steel?- exceeded the previous goal.

According to the National Bureau of Statistics, China's annual steel output stood at 1.1 billion metric tons, before the nationwide campaign, with an apparent consumption of 800 million tons a year.

Zhang Yingying, chief editor of the Iron and Steel Department at Beijing-based JLC Network Technology Co Ltd, said "the new round of overcapacity cuts will cause supplies to run slightly low in several provinces, such as Hebei, Shandong, and Jiangsu?- major steel production bases. Prices might decline correspondingly in a small range within a short period."

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