'We Must Fulfill the Plan to Cut Overcapacity of Steel,' Says China Economic Planner
07/14/2016 - Chinese officials reaffirmed the country's intentions to cut coal and steel production on Thursday as the American Iron & Steel Institute urged the U.S. government to vigorously enforce its trade laws.
According to the South China Morning Post, China’s top economic planner, the National Development and Reform Commission, said the national government will hold to account local governments that fail to meet capacity reduction targets.
The country plans to cut 45 million metric tons of steel capacity and 280 million metric tons of coal capacity this year.
That plan is beginning to yield some results, as some mills and mines are forecasting better results and banks are seeing improvement s in loan repayments, commission spokesman Zhao Chenxin told the newspaper.
Meanwhile, American Iron and Steel Institute president Thomas J. Gibson told the Senate banking committee on Thursday that China’s excess capacity is the worldwide steel industry’s “greatest challenge.”
“In addition to the excess steel capacity growth not being supported by demand, it is also not supported by profitability,” Gibson said during a committee hearing on the financial risks associated with China.
“China’s dramatic increase in steel capacity has occurred despite financial returns that are well below those achieved by other steel industries, and even other industries in China,” he said, adding that China’s major steelmakers reportedly lost more than US$15.5 billion in 2015.
Gibson urged the U.S. government to enforce its trade laws and said the America should continue to treat China as non-market economy.
The country plans to cut 45 million metric tons of steel capacity and 280 million metric tons of coal capacity this year.
That plan is beginning to yield some results, as some mills and mines are forecasting better results and banks are seeing improvement s in loan repayments, commission spokesman Zhao Chenxin told the newspaper.
Meanwhile, American Iron and Steel Institute president Thomas J. Gibson told the Senate banking committee on Thursday that China’s excess capacity is the worldwide steel industry’s “greatest challenge.”
“In addition to the excess steel capacity growth not being supported by demand, it is also not supported by profitability,” Gibson said during a committee hearing on the financial risks associated with China.
“China’s dramatic increase in steel capacity has occurred despite financial returns that are well below those achieved by other steel industries, and even other industries in China,” he said, adding that China’s major steelmakers reportedly lost more than US$15.5 billion in 2015.
Gibson urged the U.S. government to enforce its trade laws and said the America should continue to treat China as non-market economy.
