CHINA-ECONOMY: CHINA ORDERS NATIONWIDE CUT IN STEEL PRODUCTION

On July 5, Caixin reported that Beijing has issued a national mandate instructing provinces to reduce crude steel output within their jurisdictions in 2021. A few provinces – including Gansu and Anhui – have already instructed steelmakers to cap production at 2020 levels. Government sources in Hebei told Caixin the province was initially told to reduce production by 20 million tons. Hebei province instructed firms to slash steel production in April as part of a crackdown on steelmakers who had flouted emissions control measures during China’s annual legislative session. By mid-May, these restrictions were loosened as part of efforts to control skyrocketing steel prices. Between January and May this year, production was up year on year in all three of the largest steel-producing provinces, by: 2.63% in Hebei; 18.71% in Jiangsu; and 17.74% in Shandong. A report from Huabao Securities suggests the steel reduction targets will not be made public until Q3, but Steel production will have to drop off dramatically if it is to be less than it was in 2020.







Subscribe to Newswire | Site Map | Email Us
Centre for China Analysis and Strategy, A-50, Second Floor, Vasant Vihar, New Delhi-110057
Tel: 011 41017353
Email: office@ccasindia.org