China to carry out steel inspections as cracks down on low-grade metal

10 July 2017

China will carry out inspections on the quality of construction steel and machinery steel from July to September as it pushes to crack down on production of low-grade steel.

The move comes after the world's top metals consumer said at the start of the year that it aimed to eliminate output of highly-polluting low-end steel products made in small low-tech furnaces by the end of June.

China's quality watchdog said late last week it would ask local authorities to form inspection teams, which would randomly choose a total of 100 steel mills to check the quality of their products.

Mills caught churning out low-quality steel could face losing their production licenses if they do not improve quality within a certain timeframe, said the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).

The country has said it shut 600 steel mills producing low-grade construction steel during the first half of the year, cutting capacity by about 120 million tonnes.

The announcement follows a June report in the state-backed China Metallurgical News that said inspection teams would be sent out in August to check the results of the crackdown on low-grade steel products.