Posted on 18 Apr 2014
China’s slowing economy and tougher government anti-pollution efforts are taking a toll on its steel mills, rattling the world’s biggest producer of the alloy and flashing worries of a potential downturn in the global iron-ore trade.
The result is 2 percent of steel-making capacity will be eliminated this year, according to Mysteel.com, China’s largest industry researcher. At the same time, steel output will slow to a growth rate of 3 percent, from 7.5 percent in last year, Mysteel said.
The biggest losers may be older, private mills the government considers to be both inefficient and some of the greatest sources of foul air that is causing outrage throughout the nation. Premier Li Keqiang declared war on pollution at the nation’s top legislature in March, sending a signal that the state isn’t willing to continue to sacrifice clean air for rapid growth.
