China is serious about cutting millions of tons of excess steel capacity, but that will not mean lower production, particularly in the next few quarters, Eurofer President Geert Van Poelvoorde said. China pledged early last year to cut 150 million tons of excess capacity by 2020. Global steel prices have increased 45% since December 2015, but have slipped in recent weeks on concerns about a slowdown in construction and infrastructure projects. Steel output in China, which accounts for half of global steel production, rose 4.6% in the first quarter to 201.1 million tons, after a 1.2% increase to 808.4 million tons last year. China, which holds nearly half the world’s 800 million tons of spare capacity, cut 65 million tons of capacity in 2016 and aims to cut another 50 million tons this year. Global steel capacity rose 1.4% in 2016 to 2.39 billion tons.