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[Ferro-alloys.com]Premier Li Keqiang delivered a government work report at the parliament's annual session of China. On industrial structure adjustment, Premier Li said China would select the superior and eliminate the inferior through market competition. Corporate merger and reorganization would be encouraged. For serious overcapacity industries, environmental protection, energy consumption and technological standards would be strengthened. All kinds of preferential policies would be cleaned up. New capacity increment would be controlled strictly. In 2014, 27 million mt of steel capacity, 42 million mt of cement capacity and 35 million mt of flat glass capacity would be eliminated. It was ensured that the elimination task of the "Twelfth Five-year" would be completed one year in advance and rebound would not come out.

27 million mt is not much for China’s 1 billion mt of steel capacity and much of it had been done so far. So this round of elimination would not affect steel market much.

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• [Editor:Mike.zhang]