China orders Shandong Jinhaihui Technology to dismantle stainless steel capacity

The Chinese government has ordered Shandong Jinhaihui Technology to dismantle its stainless steel capacity in the city of Linyi, Shandong province, as part of the state’s drive to cut excess steel capacity in China, Metal Bulletin has learned.

The order has pushed up the Chinese domestic grade 304 stainless steel price, and added to supply concerns as the government may now be less likely to approve new stainless steel capacity, market participants told Metal Bulletin. Stainless steel mills face criticism for bypassing government approval The national office set up to dissolve excess steel and coal capacity and the department tasked to tackle mass poverty jointly issued a statement on Monday December 5 criticising three steel mills that had established steel capacity before receiving state approval, run counter to Chinese supply-side reforms and defused excess capacity in the steel industry. The announcement also reiterated that...

Published

Ellie Wang

December 08, 2016

13:44 GMT

Shanghai