China’s Steel Inspections May Tighten Supplies as Commodity Prices Surge
- Groups to check compliance in nationwide firms till end-July
- China aims to cut steel output this year amid peak production
An Iron and Steel plant in Jiayuguan, China.
Photographer: Nicolas Asfouri/AFP/Getty Images
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China began inspecting steel mills in an effort to rein in the emissions-heavy sector -- a move that could tighten supplies at a time when it’s trying to curb surging commodities prices.
The Chinese government has ordered nine groups -- consisting of officials from different cabinet ministries plus an industry body -- to visit all the country’s producing provinces to check whether outdated plants have been eliminated as agreed, according to people familiar with the situation. The inspections began June 15 and will continue through the end of July.