China Will Not Allow Any New Steel Mill Expansion Project

The Chinese State Council has said it will not allow any new steel mill expansion projects and try to help stabilize the domestic and global steel market

China vowed to stop its steel mills from expanding further as industry figures showed the sector carrying massive overcapacity which risks swamping domestic and foreign markets.

The State Council said that it would allow no new steel capacity expansion projects and would adopt a flexible tax policy on steel exports to stabilize China’s share of the global steel market.

The China Securities Journal citing a China Iron and Steel Association reported that Chinese steel capacity reached 660 million tonnes at the end of 2008 although CISA officials later told Reuters the proper figure should be 616 million tonnes.

Source: China Steel Net.com

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