Date
18 October 2017

New steel capacity cancels out cutbacks in Hebei, WSJ says

Central government efforts to eliminate outdated steel output capacity in Hebei province aren’t sufficient because new capacity is coming online faster than old capacity is being cut, the Wall Street Journal reported Wednesday, citing a senior official with a unit of Hebei Iron and Steel Group. Wang Jiguang, marketing director at Hebei Iron and Steel Group Sales Corp, said Hebei steel mills are adding around 30 million metric tons of capacity a year, twice the average amount of outdated capacity that the authorities want shut each year until 2017. According to the report, Wang said government efforts to stop the building of new capacity will likely succeed only “in a few years”.

– Contact HKEJ digest@ejinsight.com

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