What’s Happening to the Price of Steel (Infographic)
CCTY Bearing Company
China produces and consumes more than half of the world’s metals. The Chinese government set an aggressive goal of reducing overcapacity in steel and modernizing facilities in accordance with its 2020 climate goals. China aims to meet its target two years earlier than planned – in 2018. These changes will result in:
Cleaner air. To achieve the pollution reduction, the government imposed controls on steel and aluminum smelters, along with coal usage. The government has also closed a number of unregulated smelters.
Reduced overcapacity. China is aiming to cut steel capacity by 100 million to 150 million tonnes over the 2016-2020 period as part of a five-year plan (Reuters). It is also phasing out another 120 million metric tons of low-tech illicit steel capacity (South China Morning Post).