China to reduce steel output

China plans to cap its crude steel output at 460 million tonnes in 2009 and at around 500 million tonnes in 2010 as it pushes the world's biggest steel industry to get into shape. The country also plans to close steelmaking capacity of 25 million tonnes and iron-making capacity of 72 million tonnes in the next three years, the country's top planning body said in a strategy plan on Monday. The plan was posted on the website of the National Development and Reform Commission www.ndrc.gov.cn Global demand for steel has slumped in the fallout from the economic crisis, forcing Chinese steel firms to seek shelter in construction projects backed by a $585 billion state stimulus package. But by doing so, they are putting themselves at the mercy of government ambitions for belt-tightening.