China’s steelmaking province of Hebei aims to cut steel production capacity by 5mn t/yr this year.
The province met its target of cutting 15mn t/yr capacity in 2014, part of its overall goal of reducing production capacity by 60mn t/yr by 2017.
Hebei produced 171.27mn t of crude steel during January-November 2014, down by 3.6pc from a year earlier. Hebei accounted for 22.9pc of the country’s total output of 748.6mn t of crude steel for the same period.
Hebei, which includes Beijing city, is getting more serious about reducing outdated production steel, cement and plate glass manufacturing capacity to cut air pollution, which often causes thick smog in China’s capital city. But the 5mn t/yr target for this year is modest and is unlikely to substantially affect either Chinese steel production or raw material prices.
Efforts to reduce air pollution cut Hebei’s economic growth to 6.7pc in 2014 from 7.7pc in 2013. The province has set a 7pc growth target in 2015.
Three Hebei-based steel mills — Shijiazhuang Steel, Tangshan Bohai Steel and Wu’an Steel — will also move out of city areas and shift to industrial zones, as part of efforts to reduce pollution. The provincial government wants more steel mills to operate in designated industrial parks.
Hebei is also seeking to cut its coal consumption by 6mn t/yr, with a greater emphasis on reducing use of lower quality material.
Zhejiang Yaang Pipe Industry Co., Limited