(Yicai Global) Nov. 17 -- The Chinese government has held consultations with the China Iron and Steel Association (CISA) focused on the prevention of any revival in the production of scrap-based steel, the Ministry of Industry and Information Technology (MIIT) said on its website today. China has made good progress in eliminating such steel this year.
Scrap-based steel refers to steel made up of iron and steel scrap melted in an induction, its composition and quality cannot be effectively controlled.
Overcapacity cuts in the iron and steel and coal industries have exceeded annual targets this year, with 140 million tons of scrap-based steel removed from output.
Personnel from the MIIT's Industrial Raw Materials Department and the Industrial Coordination Department of the National Development and Reform Commission (NDRC) met to exchange views on operations within the iron and steel industry this year, and set out priorities for next year.
MIIT will continue to work with the NDRC for inter-ministerial joint meetings for the elimination of overcapacity. Their work will focus on implementing policy on cutting overcapacity, establishing a long-term mechanism for eliminating scrap-based steel and to encourage related parties to abide to restrictions on steel production.