China Implemented Aggressive Steel Output Cuts in late September

Falls Church, VA (AIIS) - China in late September implemented steel production cuts that are expected to reduce national output by 20 million metric tonnes.

Amid criticisms by the United States and other Western nations that it is contributing to global excess capacity, China, the world’s largest steel-maker, is setting out to reduce production as part of an industrial overhaul intended to make the country’s manufacturing more efficient and environmentally sustainable.

Chinese authorities have reportedly been more aggressive recently in conducting environmental investigations of steel mills. This has resulted in hundreds of smaller mills being closed and production becoming more concentrated among larger companies.

“The inspections are much more rigorous than previous years,” Reuters quoted a senior manager at a state-owned mill in Shandong province as saying. “Authorities are sending more teams to the mills more frequently. They don’t give you any notice in advance and only carry out surprise checks.”

Courtesy: AIIS