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China's closure of steel making capacity      [2018-05-10]

China assures the outside world that its commitment to bring down the carbon footprint would entail elimination of some of the polluting units in steel, coal and cement. It had set a target of closing down 150 MT steel capacity during 2016-20. The record so far is good and it is likely that China would overshoot the target by 2020.

 

Recently the city of Handan in Hebei province has announced closure of steel making capacity. In totality, Hebei province has planned to close down steel capacity of 10 MT each in 2018 and 2019 and 20MT in 2020. Earlier, China announced closure of around 50 MT of induction furnace capacity whose pollution record was much below the norm. It is interesting to note that under the compulsion of restructuring the Chinese economy from investment-led to consumption-led promoting thereby the development of light engineering and high value producing units, China has also started 10 new wide HSM capacities in the past 18 months along with new capacities in CRGO and other special steel categories which are not indigenously available. This pragmatic policy would  benefit the Chinese steel industry to face the odd challenges of fluctuating global prices in the long run.


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