It is reported that China steel industry should become stronger and more competitive by obsolete capacity elimination, M&As, mill relocation, structure adjustment and technical advancement on the premise of stable or decreased capacity.
China Business News reported that Beijing will not approve or support any pure steel capacity expansion projects.
As per report, the country will also stop approving coke and calcium carbide projects planned for pure capacity expansion in the following three years. Projects in violation of industry admittance will also be banned.
The central government has vowed to strengthen industry admittance, enhance environment supervision and implement differential financial policies, as well as to dampen unqualified projects by loan and financing restrictions.
Besides steel sector, it has also announced restrictions for some other industries facing overcapacity, including cement, plate glass, polycrystalline silicon and wind power generation.