China's state planners say the country is on track in cutting overcapacity in the steel and coal sectors. The National Development and Reform Commission said Tuesday that both sectors have achieved 80 percent of their annual reduction goals.

China has speeded up its efforts to reduce overcapacity in the coal and steel sectors in the second half of this year. The country's top economic planner said the sectors may meet their annual targets earlier than previously thought.

"We may finish the overcapacity cut in steel sector by October. The job in the coal sector cuts is heavier and we may finish that by November," said Xu Kunlin, NDRC Deputy Secretary-General.

For the first three quarters, China's crude steel production hit 600 million tons, flat from one year ago. Coal production stood at two and half billion tons, down 10 percent.

Xu said the overcapacity cuts have increased coal and steel prices.

"During the first eight months, profits from the members of the iron and steel association hit 21 billion yuan, which is 39 billion yuan more from one year ago. Coal plants saw their profits increase 15 percent to 22 billion yuan," Xu said.

To make sure that production will be fully reduced, the National Development and Reform Commission said it would conduct spot inspections towards the end of the year.