Authorities close 727 low-quality steel plants in crackdown

China has closed 727 steel plants for producing “ditiaogang” — low-quality steel made from scrap metal — since authorities called for eliminating such production at the end of last year.

A list of such plants categorized by provinces was published on csteelnews.com, the China Iron and Steel Industry Association’s website.

A total of 28 provinces have cracked down on local low-quality steel producers following the central government’s command last November.

They have also named the companies, which were integrated by the association’s website into the list.

Liaoning Province tops the list, closing down 66 companies producing the low quaity steel, followed by Jiangsu Province and Sichuan Province, which each closed 63.

Other provinces which have shut down more than 30 such plants include Yunnan, Shandong, Hebei and Fujian.

The low-quality steel problem is nationwide and includes remote regions such as Tibet and Xinjiang. But most illegal plants are along the east coast. Provinces such as Jiangsu and Shandong are among “the most afflicted areas” the National Development and Reform Commission says.

The list does not include the capacity of the plants. But lwo-quality steel production has been reduced by at least 120 million tons in the first half of the year, various media outlets have reported, quoting Industrial Securities.

Authorities have been urging local governments to overhaul steel industry operations in their areas and close such plants.