Analysts: 2 million jobs to be shed in China steel restructure

There are fears about the social effects of China’s steel industry’s reduced output.

Last year the country’s production fell for the first time in three decades, down 2.3 per cent to 803.8 million tonnes. The restructure in progress now would be the biggest the world had seen. According to Business Insider, some have estimated half of the current output is excess capacity.

In Tangshun district, for example, it is set to be cut by a third. The current output of the district is more than the entire USA.

Former workers are demonstrating in Muchangkou village, and authorities detained protestors.

"The steel factory took away all the land in our village. We don't have any income," one told the ABC last week.

Unnamed analysts are tipping 2 million jobs will be cut, though  official Chinese figures are about 400,000.

Overall global steel production fell last year for the first time since 2009, according to World Steel Association figures published last month.

The ABC reports that it would be years before Australia’s steel industry saw any relief from sharply reduced steel production.