In January-July period of the current year, China has eliminated 80.0 million mt of outdated coal capacity, completing more than 50 percent of the annual target of 150 million mt for the whole year of 2018, as announced by China's National Development and Reform Commission (NDRC). Meanwhile, in the given period, China has eliminated 24.70 million mt of crude steel capacity, completing more than 80 percent of the annual target of 30.0 million mt for the whole year.
NDRC stated that the supply side reform has contributed to the improvement in capacity utilization rate for coal and steel industry, resulting in the respective year-on-year rise of 93.4 percent and 18.4 percent in steel industry and coal industry’s profitabilities during the first half of the year.