China conducts steel quality inspections

Between July and September, China will test its construction steel production, implementing a policy to combat low-grade metal.

The move comes after global metal consumers announced earlier this year that they are aiming to eliminate the production of environmentally friendly low-grade steel products made in small, low-tech furnaces by the end of June.

China said late last week that it will ask local authorities to form inspection teams that will randomly select a total of 100 steel mills to test the quality of their products.

Plants caught as a result of inspections could lose their manufacturing licenses if they do not improve quality over a period of time, the General Directorate for Quality Supervision said.

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