CHINA will completely eliminate the production of a highly-polluting kind of low-end steel product by the end of June as part of the top global producer’s efforts to tackle smog, domestic media reported, citing a meeting of China’s steel association.

    According to China Securities Journal, China Iron and Steel Association (CISA) chairman Ma Guoqiang said the Central Government has already decided to launch a tougher crackdown on the product, and will make sure that all production capacity is shut down before the end of June this year.

    The low-grade steel produced in small low-tech furnaces, often using recycled material, has been identified as not only as a source of pollution but also a major safety hazard.

    The crackdown will affect about 4 percent of the country’s steel output, according to Xinhua.

    News of the fresh drive to cut excess capacity pushed China’s steel rebar prices to three-week highs yesterday.

    Production of this low-grade steel has continued even though it has long been banned by China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).

    Authorities have sent 12 inspection groups to some areas including Hebei, Henan, Guangxi and Heilongjiang to oversee the move, Xinhua reported, citing Lin Nianxiu, deputy director of the National Development and Reform Commission.

    Last month, China’s Cabinet reprimanded Jiangsuvice governor Ma Qiulin after an inspection in the province found as many as 63 firms still producing the low-grade steel, with total annual capacity as high as 12.33 million tons.

    China has launched a campaign to shut down substandard steel production as part of its war on pollution and industrial overcapacity. It is planning to close 100-150 million tons of annual steel production capacity over the 2016-2020 period.

    In 2016, it cut 45 million tons of yearly capacity, but much of it was already idle.

    (SD-Agencies)