China sets new target of capacity cut in 2017

China sets new target of capacity cut in 2017:China plans to cut a further 50 million tonnes of steelmaking capacity, shut down coal output by 150 million tonnes and at the same time close or stop construction of coal-fired power plants with capacity of more than 50 million kilowatts in 2017, Li Keqiang said on Sunday in the work report of Chinese government.

In 2016, China slashed steel capacity by over 65 million tonnes and coal production by 290 million tonnes, far exceeding the target of 45 million tonnes and 250 million tonnes respectively.

The capacity-shedding task this year, seemingly 95 million less, is actually much tricky. [The capacity reduction task in 2017 is the heaviest one, which requires the most efforts by local governments", in the words of Zhang Qingwei, governor of Heibei province, China`s biggest steelmaking province.

The argument was supported by Jiang Zhimin, vice-head of China National Coal Association. [China will face a tougher year to cut coal capacity in 2017", noted Jiang, [Some coal mines shuttered last year were already idled or operating at half capacity, while mines set to be closed this year are all running at normal capacity. Moreover, the resettlement of laid-off workers this year will be another headache for the government."

Up to now, 12 provincial regions have unveiled targets of coal capacity trim in 2017, answering the call of the central government, with Shanxi and Henan pleading the biggest reductions of 20 million tonnes.