CHINA has cut 88 million tons of steel capacity this year under its economic reform program to reduce overcapacity in several industrial sectors and is exceeding its targets to reduce coal output, Vice Premier Liu Yandong said.

    With most of the country’s steel and coal enterprises making losses in 2015, China promised in February to axe 500 million tons of coal capacity and 100-150 million tons of crude steel capacity over the next three to five years in an effort to reduce price-sapping supply gluts.

    The State Council said in a statement Thursday that this year’s targeted steel closures had already been “basically completed,” but some companies were still expanding capacity illegally.

    The country is making progress with supply side structural reforms of industries including steel, Liu said in a speech via an interpreter at the China Meets Europe economic conference in Hamburg.

    Large-size Chinese steelmakers had phased out 40.75 million tons of production capacity up to September and reductions by smaller companies brought the total to 88 million tons, she said.

    Targeted reductions were exceeded for both steel and coal, she said, adding that the cuts equated to 111 percent and 120 percent of the respective targets.

    (SD-Agencies)