The Ministry of Industry and Information Technology (MIIT) has amended measures to curb overcapacity in the iron and steel sector, the China Securities Journal reported Tuesday, citing Xu Liwen, a senior MIIT official. The government will no longer set a specific level of capacity for blast furnaces as a way to determine outdated capacity, Xu said. It will promote restructuring in the sector by encouraging iron and steel producers to voluntarily integrate their resources. In the first 10 months this year, steel mills only earned 84 fen (13.79 US cents) for every metric ton of steel, or a profit margin of 0.43 percent, Zhang Changfu, deputy head of the China Iron and Steel Association, was quoted as saying. Combined revenue of the sector was 12.97 billion yuan during the period, the report said.
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