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China to Accelerate Steel Capacity Cuts After Missing Targets

  • Coal capacity reduction through July at 38% of annual goal
  • Higher prices spurred wavering in mission to reduce supply

China plans to step up efforts to reduce overcapacity in its steel and coal industries after falling behind schedule in the first seven months, helping lift steel prices to their April highs on Tuesday as traders bet that supply will tighten.

The world’s biggest steel producer only managed to hit 47 percent of its full-year capacity-reduction target for the metal through July, and 38 percent for coal, the top economic planner, the National Development and Reform Commission, said Tuesday. Some regions have wavered in their determination to trim capacity after a recovery in prices this year, spokesman Zhao Chenxin said at briefing in Beijing.