China takes strict measures in easing surplus output capacity

CHINA July 28 2017 5:14 PM
BEIJING (Scrap Register): In order to control the surplus output capacity in domestic Aluminum and Steel smelting sector during the first half of this year, China has made great efforts, as per the Ministry of Industry and information Technology.

As an effort to control the surplus output capacity, China banned poor quality land steel operations and also during the first five months of the current year they permanently closed down 84.8 percent of the 50 million tons per year outdated, obsolete surplus Steel capacity which has shut down during this year.

Around 12 million tons per year of built aluminum smelting capacity in China may be in breach of government rules, the China Nonferrous Metals Industry Association quoted.

China had total built aluminum output capacity of 43.2 million tons per year as of the end of 2016, with 36.5 million mt/year operational, but only around 30 million tons per year of that capacity complied with government standards, according to CNIA.