Hebei sets higher steel capacity cut target for 2019

China's northern province of Hebei has raised its steel capacity reduction target for this year, with a focus on removing steel plants from the cities of Zhangjiakou and Langfang.

Hebei, China's largest steel producing region, aims to reduce steel capacity by 14mn t/yr compared with an actual crude steel capacity reduction of 12.29mn t/yr in 2018. Hebei has set a target of reducing its steel capacity by 40mn t/yr over 2018-20.

Hebei in 2017 set a target for removing all steel mills from the three cities of Langfang, Baoding and Zhangjiakou, while partially withdraw steel production from Chengde and Qinhuangdao cities by 2020.

China will accomplish its 13th five-year economic plan, 2016-20 steel capacity reduction target of 150mn t/yr this year itself. There is no clarity on whether new capacity cut targets will be set for the country this year or general guidelines on capacity replacement projects and strict implementation of environmental and safety standards will be issued.

Hebei will also remove 3mn t/yr of metallurgical coke capacity this year.

The province will strictly enforce the standards of quality, environmental protection, energy consumption and safety, while seeking to shut down small mills and promote creation of bigger production facilities, the provincial government said.