CISA calls for preventing aimless expansion of steel capacities
2020-04-23 16:56:10 [Print]
On April 22, China Iron & Steel Association (CISA) held a press conference on Q1 Development of the Chinese Steel Industry. According to CISA, by April 19 among the 191 enterprises that CISA tracked, there are 178 companies in production and there are 13 companies which suspended production or have not resumed operation owing to the COVID-19. At present China maintains steady iron and steel production; but meanwhile, affected by the fact that indexes for major steel-consumption industries all declined notably in Q1, steel consumption declined and steel prices kept moving down.
CISA noted that, thanks to years of reform on the supply end, the Chinese iron and steel industry sees improving risk-resistance capability, but have not gained well established achievements from the overcapacity-reduction campaign, so it's still of urgent need to deepen the reform on the supply end. Government will continue to crack down illegal capacity expansion projects and encourage steel companies to make investment decisions in a scientific way so as to prevent iron and steel enterprises from expanding production capacities aimlessly and to avoid reemerging risks of severe overcapacity.
CISA noted that, thanks to years of reform on the supply end, the Chinese iron and steel industry sees improving risk-resistance capability, but have not gained well established achievements from the overcapacity-reduction campaign, so it's still of urgent need to deepen the reform on the supply end. Government will continue to crack down illegal capacity expansion projects and encourage steel companies to make investment decisions in a scientific way so as to prevent iron and steel enterprises from expanding production capacities aimlessly and to avoid reemerging risks of severe overcapacity.
