2016 appeared to be a year where China would repeatedly release news documents about how they were closing down factories and reducing the their levels of steel production, however, a report released by environment group Greenpeace, said that steel capacity in operation actually rose in the last calendar year.
China is by far and away the world’s biggest producer and consumer of steel, said in the early months of 2016 that it would be shutting as much as 150 million tones of annual crude capacity steel over the next five years. The decision came about through a variety of reasons; a supply gut that had encouraged a surge of cheap exports and consequently a backlash from others nations and the countries ongoing battle with hazardous pollution levels were the primary reasons for the announcement.
"We believe that it's above all in China's self-interest to tackle the overcapacity problem, because of the tremendous health and environmental costs as well as associated financial risks," said Greenpeace campaigner Lauri Myllyvirta.
China's total steel capacity stood at 1.1 billion tonnes at the end of 2015, according to official figures, a surplus of around 300 million tonnes.
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