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[Ferro-Alloys.com] Oversupply concerns weigh heavily on the steel sector in China as some 80 million metric tons of fresh capacity will hit the market this year amid dwindling demand due to the COVID-19 epidemic, an industry expert said.

 

Li Xinchuang, chief engineer of China Metallurgical Industry Planning and Research Institute, an industry research and consultancy platform under the State-owned Assets Supervision and Administration Commission of the State Council, said at a recent industry forum that the new capacity was primarily a result of the "capacity replacement" program that was outlined by the Ministry of Industry and Information Technology. The aim is to help steel companies shed outdated capacity and give permission to those companies for new capacity at certain levels.

 

According to data released by the National Development and Reform Commission, China produced 499 million tons of crude steel during the first six months of this year, up 1.4 percent on a yearly basis.

 

Click here for more information: Ferrosilicon Daily Express 8.17

 

 

 

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