As part of Hebei province’s goal to cut steel capacity by at least 10 million mt in 2018, the ratio between the cut in steel overcapacity and replaced capacity will be kept at no less than 1.25:1, according to a release by the?province’s Industry and Information Technology Department in the recent week.
The replacement of outdated converters with?electric furnaces could follow a ratio of 1:1 in capacity. Sintering, coke oven, blast furnace and other supporting equipment shall be removed together with converter.
Hebei will not accept any steel capacity transferred from beyond the province before it meets its goal?in addressing steel overcapacity this year.
In the last five years, Hebei has cut?steel production capacity by 69.9 million mt, iron production capacity by 64.4 million mt, and cement production capacity by?70.6 million mt.