China's Ministry of Industry and Information Technology, Li Yizhong, also says there should be no new or additional steel mills within three years. Li says the Chinese steel industry is facing a serious over-capacity problem, as demand has plummeted due to the global financial crisis.
The Minister says the steel mills have an estimated total output capacity at 660 million tonnes already, and many steel projects are still under construction. Demand, however, is only estimated to be around 470-million tonnes.
The Minister says if the trend continues, the Chinese steel industry will reach a dead end. As a result, he says the Industry and Information Ministry will not approve any expansion-related projects in the steel industry, moreover it will eliminate outdated projects.
Source: China Daily
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