Chinese Steel Producers To Cut Output By At Least 10%

MetalProducing.com reports that four of China’s largest steel producers will cut raw steel output by 10-20%. The goal is to halt the rapid decline of steel prices in China, and the production cuts will last through the end of 2008.

The companies expected to reduce output are Shougang Group, Hebei Iron & Steel Group, Anyang Iron & Steel, and Shandong Iron & Steel, which have a combined capability of 100 million metric tons per year. China’s total raw steel capacity is at least 520 million metric tons/year, according to the latest estimates.

If fully realized, the reported capacity cuts would reduce China’s output this year by about 34 million metric tons. ❖