China’s new steel policy to cool steel industry investments
According to recent news in the market,
China's new steel policy aims at cooling steel industry
investments. As previously reported by SteelOrbis,
China's National Development and Reform Commission (NDRC) announced that it would issue a new steel policy, which will cover subjects such as financing management, technique equipment and the rules on the market entry. However, the Commission did not reveal the details of the policy.
Sources report that the policy aims to upgrade steel industry's overall structure. Moreover, it aims to reduce dependency on import market. Under the scope of the policy, high technology will be applied to produce flat products and the producers will be encouraged to invest
iron ore mining in foreign countries to ensure raw material availability.
On the new policy, the analysts commented that largest steel mills will benefit from the new policy but the case will be the reverse for small mills as survival will be difficult for them under these circumstances.