2009-5-6  origin: Beijing reporting

On May 4, the National Development and Reform Commission issued again to put forward backward production capacity elimination.

According to the paper, the steel industry must complete eliminating those companys below 300 cubic meters of blast furnace capacity and 20 tons and below 20 tons of converter, electric furnace production capacity by the end of 2010.  By 2009, the industry plan to iron out the backward production capacity 10 million tons, steel 6,000,000 tons, and then out behind the capacity of 72 million tons of ironmaking, steelmaking capacity to 25 million tons by 2011.

Concerning elimination of outdated production capacity reiterated by Development and Reform Commission,Shanghua,the Secretary-General of the Chinese Iron and Steel Industry Association (hereinafter referred to as "China Steel Association"), said that this was the implementation of planning by the Industrial Promotion Development and Reform Commission , but also showed that production capacity surplus has already attracted great attention in the industry and the government.

On the same day, with an interview with our reporter, the Secretary for the Department of Industrial raw materials inspector Song Jia-yin, said recently, in the absence of the corresponding market demand, China's steel industry was still expanding production capacity, which resulted that excess production capacity became the biggest iron and steel industry issues , "nowadays eliminate backward production capacity will help alleviate this problem." "At present, the Department of Public Works continued the investigation of backward steel production capacity, specific details were still to be made out."