More public information about so-called mislabelled steel capacity cuts in China is now being circulated with a programme of national inspections being implemented over the period 2-25 May. China’s eastern Fujian, north-western Gansu and Xinjiang provinces have reported more progress on mislabelled capacity elimination, with most of them seeing equipment completely removed, Kallanish notes.

According to Gansu provincial Development & Reform Commission, four mislabelled steelmakers have been closed and all related capacity removed. Local authorities are now demolishing the sites to ensure that there can be no return there to illegal steel production.

By 9 May this year more than 31 mislabelled steel mills have been closed and equipment removed by local authorities. Another four mills totalling 1.5 million tonnes/year steel capacity are also targets for closure before end of June (See table below).

Wulumuqi city mislabelled steel elimination targets - May/June 2017

Company Induction furnace  Capacity (tonnes/year)
Xinjiang Longjiang Xingguanzhong Special Steel 8*50-t 1,200,000
Wulumuqi Midong Jiashun Metal Products 6*12-t    200,000 
Wulumuqi Midong Tongda Falan Semiproducts plant 8*5-t      50,000
Wulumuqi Midong Yongheng Iron Part processing plant 6*5-t      50,000
Total   1,500,000

Source: Xinjiang Wulumuqi city Economy & Information Commisison