As Beijing aims for blue skies, steel mills get unexpected boost

Cutting output: An employee at a steel factory in Dalian. China has promised to slash steel capacity by 45 million tonnes this year. — Reuters

SHANGHAI: When Beijing ordered hundreds of industrial plants to close ahead of China’s first-ever G20 summit next week, the government wanted to spruce up the host city of Hangzhou and ensure world leaders would gather under clear blue skies.

In doing so, China’s leaders may have given the nation’s stricken steel mills an inadvertent leg-up, helping to restore profitability after a years-long downturn caused by weak prices as a global glut swelled and demand slowed.