China's Tangshan city is introducing further steel production cuts beyond the winter heating season to improve air quality, Bloomberg News reported March 13.
The National Development and Reform Commission's Tangshan branch ordered a two-tier system of restrictions, effective March 16 through Nov. 14, in which the steel mills near the city center will be required to halt 15% of capacity while the rest will be asked to idle between 10% and 15% capacity.
The move will affect about 9.9 million tonnes of steel capacity, according to an analyst.
China's northeastern Hebei province, where Tangshan is located, ordered capacity cuts of up to 50% on steel during the winter heating season that ends March 15.
As part of a government push to reduce smog and improve the environment, Hebei will slash capacity by 20 million tonnes between 2018 and 2020.
According to a February report, the Chinese government is accelerating its targeted steel capacity cuts, aiming to complete the 150 million-tonne reduction this year instead of the initial 2020 deadline.
The country already shut down 115 million tonnes of steel capacity between 2016 and 2017 but still produced a record 832 million tonnes of steel in 2017.
