Chinas Jiangsu province has unveiled a plan to cut 7
million tonnes of steelmaking capacity between 2014 and
The steel sector was
among four industries that the eastern coastal provinces
government singled out Dec. 29 as facing overcapacity.
This follows a similar
move by Hebei province, Chinas steel production hub,
which recently announced a plan to cut 15 million tonnes of
capacity in 2014.
provincial government described the capacity of its steel
industry as large but of low concentration, with market
participants competing mainly via price wars.
The government will
push for consolidation in the region, and three to four steel
producers with more than 10 million tonnes of capacity are
expected to be formed over the next several years.
government will raise the proportion for the production of
advanced steel products to more than 50 percent, it said.
In addition, the
government wont provide any financial support to boost
capacity in the four industries.
which produced a total of 75 million tonnes of crude steel in
the first 11 months of 2013, is the second-largest steel
production region in China, just behind Hebei province,
according to a local data provider.
Major mills based in the region include Jiangsu Shagang
Group Co. Ltd., the countrys largest private mill;
Zhongtian Steel Group Co. Ltd.; and Jiangsu Yonggang Group Co.
A version of this
article was first published by AMM sister publication Steel