Chinese Officials Have a Solution to Steel Glut: Use More
- Chongqing mayor floats plan to triple use in construction
- Proposal discussed at top-level development planning meeting
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Senior Chinese officials are pushing for regulations to boost the amount of steel used in new housing as a way to absorb excess supply exacerbated by a slowdown in the world’s second-biggest economy.
In a closed-door gathering of more than 300 Communist Party leaders in Beijing in October, Chongqing Mayor Huang Qifan proposed tripling the amount of steel used in construction, according to a person with knowledge of the matter. He argued that using 150 kilograms (330 pounds) of steel per square meter, compared to about 50 kilograms now, would ease overcapacity and improve housing quality, said the person, who asked not to be named because the discussions were private.