China government to restrict steel mills’ capacity
SteelOrbis has reported that, due to strong demand for steel in
China, steel mills from various countries have been forming joint ventures in
China and there is an increase in the
investments by local producers as well as foreign ones in order to benefit from the rising steel requirement in the country. Apart from overinvestments, some local producers have also started to increase steel output capacity. Related with the increase in
investments and steel
production, the government warned the producers about the risk of overinvestments earlier this month. According to the latest reports,
China government has now decided to limit the permission licence for new steel capacities with the purpose to control the local market.