China's Ministry of Industry and Information Technology (MIIT) has announced new targets for the elimination of outdated steel production capacities by domestic steel producers in 2011, with the overall total reaching 3.122 million mt. China's new targets for outdated capacity elimination in overall domestic industry in 2011 will affect 2,255 enterprises in 18 industrial sectors.
Among all the steelmaking enterprises, Shandong Province-based Jinan Iron and Steel Co. (Jinan Steel) has by far the largest capacity elimination target, reaching 2.8 million mt for the current year. The total annual production capacity of the steel producer in question is around 10 million mt. Jinan Steel has said that it has already closed down four 350 cubic meter blast furnaces. By the end of September, it is going to close down another two blast furnaces of similar capacity.