State Council Pledges 8 Pct Reduction in Steel Capacity

(Beijing) – A central government guideline to curb industry overcapacity seeks to cut the country's steel production capacity by 80 million tons by the end of 2017, or about 8 percent of China's existing capacity.

The guidelines, issued by the State Council on October 15, pledge to push forward with structural adjustments in major steel-producing provinces, such as Shandong, Hebei, Liaoning, Jiangsu, Shanxi and Jiangxi, through consolidation and relocation.