China will be closing all of its medium frequency furnaces by June 2017. These furnaces contribute close to 9 percent to China’s total steel capacity.
The news will only hit the global market including India only if it impacts the country’s overall production, said RK Goyal, Managing Director of Kalyani Steels.
China’s current capacity to produce is 1300 MTPA and production is 800 MTPA. The impact of reduction of 50 MTPA by closing these furnaces will have to be watched, he said.
In the Indian steel industry, weak demand is impacting the ferrous industry, Goyal added.
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