China Promotes Steel De-Leveraging with Average Debt Asset Ratio below 60%

SHANGHAI, Mar. 30 (SMM) – China plans to cut 50 million tonnes of steel capacities in 2017 through disposing zombie companies, eliminating backward and low-grade capacities.

Meanwhile, average debt asset ratio of steel industry should be below 60% after 3-5 years.

In other news, the government, aiming at on regional resources conformity, will merge steel mills into 1-2 of world-class ultra-large mills, 4-6 of extra-large regional mills, which will account for more than one third of crude steel capacity in China.

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