Shandong Province to Cut Steel Capacity in 2021 & 2022
Chinese media reported that China's Eastern Shandong Province plans to relocate or cut a total of 21.41 million tonnes of steelmaking capacity and 22.38 million tonnes of iron making capacity by 2022. The provincial government aims to cut 4.65 million tonnes of steel capacity in 2021 and the remaining 16.76 million tonnes in 2022. According to media reports, steel capacity in cities among regions that could affect air quality in the Beijing-Tianjin-Hebei area, such as Binzhou and Zibo, should all be relocated or eliminated in principle. The Shandong provincial government said it will encourage the removal of capacities along the Qingdao-Jinan rail corridor.
Shandong is the third biggest steel producer province in China. The province produced 79.94 million tonnes of crude steel in 2020, accounting for 7.5% of the country's total output.