SHANGHAI, Sept 5 Central China's Henan province
will cut annual coal capacity by 62.54 million tonnes and crude
steel by 2.4 million tonnes over the 2016-2018 period as part of
efforts to tackle nationwide supply gluts in the sectors, Xinhua
news agency reported.
China has vowed to bring total coal capacity down by as much
as 500 million tonnes in the coming three to five years, and
also plans to close 100-150 million tonnes of steel production
by the end of 2020 in a bid to prop up prices and curb
widespread losses in the two industries.
The Henan provincial government said in an overcapacity
"roadmap" that it would work to dispose of "zombie enterprises",
promote industry restructuring and "improve the effective supply
capability and overall competitiveness of the steel and coal
sectors", Xinhua reported at the weekend.
China is estimated to have a coal capacity surplus of around
2 billion tonnes and a steel capacity surplus of 300 million
Henan province produced 135.5 million tonnes of coal in
2015, down 8 percent on the year and accounting for 3.7 percent
of the country's total output.
Provincial steel output reached 28.97 million tonnes, up 0.5
percent on the year and amounting to 3.6 percent of the national
(Reporting by David Stanway; Editing by Joseph Radford)