Deng Qilin, general manager of Chinese steelmaker Wuhan Iron and Steel Co. (
WISCO), has declared that the producer has already cut output by 15-20 percent in the context of the price decreases caused by capacity expansions in the Chinese steel market. Stating that suspended capacities could be put back into operation at any time, Mr. Deng expressed the hope that the government’s stimulus package for the steel industry will be implemented as soon as possible specifically as regards the elimination of disqualified capacities.
Mr. Deng also declared that Liaoning-based Ansteel, Shanghai-based
Baosteel and
WISCO have not expanded
production, but on the contrary
WISCO has idled two blast furnaces and Ansteel and
Baosteel have suspended operations at one blast furnace each. The major steel producers, he said, realized that
production expansions would worsen the imbalance in the market between supply and demand. Mr. Deng added that
WISCO, with its overall annual capacity of 30 million mt and its output currently cut by 15-20 percent, will adjust its
production according to the market situation.
Meanwhile, Mr. Deng stated that
WISCO had no further specific merger and acquisition plans following its restructurings with Yunnan-based Kunming Iron & Steel Co. and Guangxi-based Liuzhou Iron & Steel Co.