China will cut crude steel capacity by 100 million150 million tonnes within the next five years in a bid to tackle a crippling glut that has dragged prices down to multiyear lows and saddled firms with huge debts, the country's cabinet said on Thursday.
The State Council also said it would ban new steel projects and work to eliminate socalled stricken "zombie" mills, which have stopped producing steel but have not formally shut down. The China Iron and Steel Association said the country's total annual crude steel capacity now stands at 1.2 billion tonnes. Total production reached 803.8 million tonnes last year, down 2.3 percent, the first drop since 1981.
Source: Economic times