China will use all means to meet its goal to cut steel and coal capacity this year despite local reluctance to reduce output as prices rise, China’s top economic planner said on Thursday.
“As state leaders have stressed, we must fulfil the plan to cut overcapacity of steel and coal this year,” said Zhao Chenxin, a National Development and Reform Commission spokesman, in Beijing. “The pledge made by local governments will be checked at year end and those who fail to accomplish their targets will be held accountable.”
China planned to trim its steel production capacity by 45 million tonnes this year and cut coal output capacity by 280 million tonnes, Xu Shaoshi, head of the top economic planner said on June 26.
So far, the plan to stem overcapacity is starting to bear fruit with improving operations of coal and steel mills, expectations of better performance and increased bank loan payments, Zhao said.
In the first five months of this year, China’s crude steel output dipped 1.4 per cent from the same period a year earlier and its coal production dropped 8.4 per cent.
As state leaders have stressed, we must fulfil the plan to cut overcapacity of steel and coal this year