(Yicai Global) Jan. 26 -- There has been an overall improvement in production and operating conditions in the steel, iron and coal industries, and they have made significant accomplishments in reducing overcapacity, the National Development and Reform Commission said.
China Iron and Steel Industry Association member enterprises will record profits of approximately CNY35 billion (USD5 billion) for last year, compared with 2015's CNY84.7 billion loss, the NDRC website said on Jan. 25. Coal companies with at least CNY20 million in main business revenue realized CNY95 billion in profits last year, approximately 2.1 times 2015's.
Efforts to cut excessive production capacity in the steel, iron, and coal industries exceeded targets on time last year, according to the NDRC. Summarized data from various regions showed that the nationwide goals to reduce crude steel production capacity by 45 million tons and coal production capacity by 250 million tons were met on time and above target. Companies that violated laws and regulations or fell behind target were legally shuttered.
Approximately 1,500 small 300,000-ton coal mines were closed, the NDRC said. Many of the production capacity reductions involved low-safety, high-cost coal mines that had long suspended or semi-suspended production.
The merger and restructuring of Baowu Steel and Wuhan Iron and Steel into Baowu Steel Group Corp. created a more competitive steel and iron giant, NDRC noted. Other mergers and restructurings involving steel and iron firms are being actively researched and promoted.