A forum on China’s raw materials market organized by the China Metallurgical Industry Planning and Research Institute (MPI) was held in Beijing on December 9. At the forum, Xu Wenli, director of the steel department of China’s Ministry of Industry and Information Technology (MIIT), stated that in the first two years of the country's 13th Five-Year Plan period (2016-20) China has eliminated 115 million mt of outdated steel capacity, while the overall elimination target set for China’s steel industry in the 13th Five-Year Plan period was 100-150 million mt, indicating that China will reach the upper limit of its steel capacity elimination target for the given period. Mr. Xu also stated that the MIIT has formulated a new document for capacity replacement, which will be issued soon, and will start its implementation of as next year. He said the new document will clarify some issues; for instance, the transfer among steelmakers of capacities which are to be replaced, and which kinds of capacity may be transferred and replaced.
In addition, Mr. Xu stated that the MIIT will cooperate with the China Iron and Steel Association (CISA) in helping the different regions in China to ensure that capacity replacement work runs smoothly.