A single mill in central China that can produce half as much steel annually as the UK has fired up its furnaces on the back of stronger prices, highlighting the difficulties faced by Beijing to cut sector capacity. The Financial Times reports steel mills are halting or reversing planned capacity cuts after a recent 20% jump in steel futures bolstered margins. Revived production casts a shadow over Beijing’s plans to cut up to 150m tonnes from its 1bn tonne annual steel capacity over the next five years — a goal that some analysts consider too modest. New regulations are designed to force cuts on mills that do not meet tougher environmental, technical or credit standards.
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