China takes measure against unlicensed rod production

China takes measure against unlicensed rod production

Chinese government has recently made a call to steel producers and local governments in the country that unauthorized production of steel rods used in construction sector to be stopped as unauthorized production has led to increase in prices of raw materials and energy shortages. In a statement released by the government, surging rebar and rod prices encouraged certain investors to build unlicensed plants. Moreover, it is also stated that as the equipments used in these plants are old, they consume more energy and contaminate environment. Accordingly, government asked local government to investigate unlicensed production of subject products and submit reports to the government by August.