World's top steel producer China is confronting expanding illicit new capacity hazards, reported by Ministry of Industry and Information Technology authority. The service is at present leading reviews to check obsolete limit and resolve the issues of overcapacity in China, ministry’s raw materials department reported. The ministry hopes to give rules to empower reception of electric arc furnaces in 2019, Xing said. Electric-arc furnaces just use scrap metal and power to create unrefined steel, yet their expenses could in any case be higher than customary blast furnaces that use coking coal and iron ore. China has closed 700 little steel factories with 140 million ton steel limit considered unsatisfactory, in addition to 150 million ton inefficient limit at bigger firms over a four-year crusade against pollution and abundance capacity in substantial industry. In excess of 50 Chinese steel organizations promised in 2018 to close old capacity and assemble new furnaces with a consolidated yearly limit of 60.29 million tons, as indicated by official industry information. Of this, about 25 million ton limit is booked to come on line in 2020. China will likewise accelerate mergers and rebuilding for steel enterprises, Xing emphasized the nation's arrangements to unite its steel segment. China produced a record 928.26 million tons of rough steel in 2018, up 6.6% from 2017.