China is ahead of schedule in phasing out excess steel capacity for the year as part of a government-mandated five-year drive to cut the fat out of the industry."We may finish the overcapacity cut in steel sector by October.," said Xu Kunlin, NDRC Deputy Secretary-General.
The Ministry of Industry and Information Technology said on Oct. 25 that capacity removal had reached 90% of the annual target by the end of September.
The mills have accelerated shutdowns as the year-end approaches, losing 40 million tons of steel capacity so far this year compared with the target of 45 million tons for the whole year.
Central government-controlled steel makers are set to meet their share of capacity cuts of 7.19 million tons by the end of October, the head of restructuring at the State-Owned Assets Supervision and Administration Commission told reporters over the weekend.
To make sure that production will be fully reduced, the National Development and Reform Commission said it would conduct spot inspections towards the end of the year.