China will ensure its crude steel output falls in 2021 and launch a nationwide investigation into the implementation of steel capacity cuts since 2016, industry regulators said on Thursday, as the country aims to meet goals to curb emissions, reported Reuters.
“Since 2016… the reduction of steel capacity has achieved significant results, but some deep-rooted contradictions have not been solved fundamentally,” the authorities said the China’s National Development and Reform Commission (NDRC) and the Ministry of Industry Information Technology (MIIT) in a statement.
They also said they would promote high-quality development over quantity after some companies had “an impulse” to construct steel projects blindly, as industrial output recovers from the impact of the pandemic, that is undermining capacity cuts.
China says it had cut 150 million tonnes of capacity and 140 million tonnes low-grade steel in the last five years. However, its annual crude steel output has set a record for four straight years and hit 1.065 billion tonnes in 2020.