SHANGHAI Dec 30 China will increase its targets
for capacity cuts in steel and coal in 2017, while extending its
campaign against overcapacity to industries such as cement,
glass, electrolytic aluminum and shipping, a state-run newspaper
said on Friday.
China has vowed to restructure its vast industries to tackle
inefficiency and cut capacity overhangs, promising early this
year to close around 500 million tonnes of coal capacity and 100
to 150 million tonnes of steel capacity in three to five years.
The world's top producer and consumer of coal and steel will
aim to raise the 2017 closure targets in the two sectors by more
than 10 percent, the Economic Information Daily said, without
giving more details.
"Measures to tackle overcapacity this year have not
fundamentally changed the oversupply in the coal market,"
the paper quoted Nur Bekri, director of the National Energy
Administration, as saying.
"Cutting overcapacity will remain a key trend in the coal
industry in the next three to five years."
The 2016 target for slashing outdated capacity - including
250 million tonnes in the coal sector and 45 million tonnes in
iron and steel sector - has been finished ahead of the schedule,
the paper said.
The government will also turn its attention to other
industries, including the cement sector, which has continued to
add new production lines despite demand already peaking, it
It quoted industry sources as saying that the extension of
the campaign would "largely improve profitability in these
(Reporting by Winni Zhou and David Stanway; Editing by Richard