China to achieve goals in advance

Updated 2016-10-26 10:27:17 Shanghai Daily

China will achieve this year's capacity reduction target ahead of schedule but a surplus of steel and coal supplies is expected to linger by 2020, National Development and Reform Commission said yesterday.

China will complete this year's capacity reduction goal in the steel industry by the end of October, and meet the target for the coal sector by November, the NDRC said in a media briefing yesterday.

The NDRC estimates the demand for coal at 4.1 billion tons by 2020, with the supply set to be higher at 4.6 billion tons.

Cutting overcapacity ranks high on the government's reform agenda in a bid to boost the country's economic performance.

China's annual crude steel surplus is estimated at around 300 million tons, three times the annual output of Japan, the world's second-biggest producer. China has shut down steel plants with total capacity of above 90 million tons over the past five years and plans to reduce output by an extra 100-150 million tons by 2020.

"The government is leading the industry toward a gradual capacity reduction," said Hu Kai, senior vice president who focuses on the state-owned enterprises at Moody's.

"The pressure of defaults in overcapacity industries is eased as steel and coal companies posted better profit growth in the third quarter."

But Hu said the fight to cut excess capacity needs a stable policy for at least two years to curb volatile prices in the commodities market.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58April 29 2017 17:13:33

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16April 29 2017 17:13:33

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18April 29 2017 17:13:33

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords