Yu Yong, president of the China Iron and Steel Association (CISA) and chairman of the state-owned Hebei Iron and Steel Group, stated at the 10th China International Steel Congress held in Beijing that China will shut down more outdated steel mills, aiming to reduce its total crude steel capacity to less than 1.0 billion mt by 2025, and also aiming to keep its overall capacity utilization rate at around 80 percent by that time.
China plans to eliminate 30 million mt of capacity this year, while it has already shut down around 100 million mt of illegal low-grade steel capacity which was used to supply the construction industry.
Mr. Yu also said that China’s overall steel demand will fluctuate in a downward direction, while adding that overcapacity is going to persist for a relatively long period.
“On the basis of China’s achievements in cutting capacity, China will use methods, including the law, market forces, financial instruments and also mergers and acquisitions to continue easing overcapacity,” Yu added.