It is reported that MIIT announced the elimination lists of steelmakers and iron smelters recently which are found with bigger totaled capacities than the minister issued in this May.

Industry people disclosed that some of the capacities listed in the revealed enterprises have already been weeded out.

Mr Du Hui Qilu Securities analyst calculated and said the announced capacities for elimination account for some 5.0% of total pig iron capacity and 1.2% of crude steel capacity. If the policy can be put into practice, the domestic supply glut may be greatly eased, but it’s more likely the washed out amount will be less than the calculation.

It’s predicted by the industry insiders that the domestic steel production will keep expanding this year, taking into account the activity of installing bigger projects when the smaller ones are out.

Mr Li Yizhong MIIT director had addressed in a national conference that despite dip in daily steel production, the annualized steel output could increase some 10% from last year to reach 620 million tonnes to 630 million tonne.

(Sourced from www.Mysteel.net)
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