It is reported that because of serious overcapacity China will phased out 100 million tones backward iron smelting capacity in 2010 to 2011.

 

Mr. Jia Yinsong, inspector from China Ministry of Industry and Information Technology Raw Materials and Industries division, said in March 23rd that blast furnaces which are 300 cubic meters and below and steel converters and electric furnaces which are 20 tones and below will be eliminated by the end of 2010. Furthermore, blast furnaces which are 400 cubic meters and below and steel converters and electric furnaces which are 30 tones and below will also see elimination by the end of 2011.

 

According to Mr Jia, any simple new capacity or expanded capacity will no longer be approved in the near future to prevent unauthorized construction of iron and steel projects in the name of backward production capacity elimination and stimulate technical innovation in existing enterprises.

 

Mr Jia said the structural contradictions in Chinese iron and steel industry are still very prominent. Many problems such as overcapacity, irrational industrial distribution, low concentration, weak resource control, etc. are unsolved.

 

Besides backward capacity elimination, China will also promote the restructuring of the steel industry mergers and reorganization.

 

Statistics show that China had had more than 700 million tones steel production capacity in 2009 and the annual production of crude steel in 2009 was 568 million tonne.

 

Sourced from www. steelprices-china.com