Hebei Orders First Round of Steel Production Cuts by November

Xinhua: China committed to cutting steel overcapacity

hina, the world's largest steel producer and consumer, is resolute in its commitment to reducing overcapacity in the sector, although this may result in job losses.

China's industrial overcapacity is a byproduct of the stimulus program implemented during the global financial crisis, during which China contributed about 50 percent to world economic growth.

Now that the global economy is showing signs of picking up, however, the country has been blamed for flooding overseas markets with cheap steel.

It is unfair to rely on China for economic growth during times of strife, only to sing another tune when the global economy warms.

iFeng: 河北削钢铁产能再出招：六类地方标准均严于国标

It is reported that Hebei Province this year the first batch of 10.77 million tons of iron, 8.2 million tons of steel production capacity production cuts has been ordered to be completed before the end of November , the rest by year end. Among them, Tangshan, Handan, Qin Huang Island, Langfang City 4 Yajian annual total 15.92 million tons of iron, 13.05 million tons of steel production capacity, Qinhuangdao, Langfang has been assigned to specific companies and equipment, River Steel Group has been implemented to specific equipment.

Steel mills are upping production at present, perhaps to produce as much as possible before they're potentially forced to shutter production.

Hellenic Shipping News: Cutting excess capacity poses challenges to China’s economy: UBS

Ongoing excess capacity reduction in China will result in job losses, less consumption, slower growth and higher debt, UBS Securities said in a report.
The lengthy report, titled “The Economic and Financial Impacts of Excess Capacity Reduction,” identified coal mining and iron & steel as the main excess capacity sectors, while cement, flat glass, aluminum smelting and ship building are also included.

If UBS is correct, a sharp slowdown in data will arrive in Q4.

Related: Hebei’s Efforts to Curb Air Pollution Get More Support from the World Bank. Perhaps the World Bank will help finance China's steel cuts.