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China’s steel capacity grows despite drive to cut output, Greenpeace says

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In this photo taken on May 10, 2010, a worker walk on the steel pipes at an iron and steel factory in Huaibei in central China's Anhui province. China's industrial growth slowed further in July as Beijing clamped down on a credit boom, while inflation spiked to its highest level this year amid summer flooding that wrecked crops. The government data Wednesday, Aug. 11, 2010, added to signs China's boom is cooling and fed expectations Beijing needs to reverse course after imposing lending curbs this year to prevent a bubble in stock and real estate prices. (AP Photo)**CHINA OUT**

China’s steel industry saw an increase in operating capacity last year despite a government push to tackle excess production, Greenpeace and an industry ­consultancy say in a new report.

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The regional arm of the NGO and Chinese consultancy Custeel found that most steel mills shut down during the drive last year were already idle.

The cuts made during the campaign were offset by resumed production and newly added output, leading to a net increase of 36.5 million tonnes in operating capacity, according to the report published on Monday.

The study came as the top ­economic planner announced crude steel production increased 1.2 per cent to hit 808.37 million tonnes last year, against a 2.3 per cent drop in 2015.

China, which ­accounts for about half of global steel output, has pledged to cut annual production by 100 to 150 million tones by 2020, to help shift the economy away from a reliance on polluting heavy industries.

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