China has announced that in 2018 it will eliminate another 30.0 million mt of steel production capacity. In 2016 and 2017, China eliminated 65.0 million mt and 50.0 million mt of steel production capacity, respectively. According to its Steel Industry Adjustment and Upgrade Plan (2016-20), China will eliminate 100-150 million mt of steel production capacity by 2020. The 30.0 million mt of steel capacity reduction means that from the start of 2016 to the end of 2018 China will have eliminated 145 million mt of steel capacity.
Meanwhile, China will cut 150 million mt of coal capacity in 2018 and will thus have eliminated 590 million mt of coal capacity in the 2016-18 period, already exceeding the 500 million mt capacity elimination target for the 2016-20 period.
At the same time, coal-fired power generating units with a capacity of less than 300,000 kilowatts that fail to meet emissions standards will be closed this year, according to the report to delivered Monday, March 5, at the first session of the 13th National People‘s Congress.