China’s has barred domestic steel industry from adding new capacity as well as transferring steel capacity from one region to another. The government has also categorically asked steelmakers from publicising and announcing new steel capacity replacement and filing for new steel projects.
From Jan 24, China’s government will not approve new steel capacity expansions project, according to the National Development and Reform Commission of China (NDRC). Authorities will examine all the existing steel projects and order the suspension of production at steel companies that do not comply with environmental and emission standards.
This new policy announcement is in line with China’s resolve to cut down its steel capacity for supply-side structural reforms and overcome the problems overcapacity in the steel industry. Authorities are working to set fix guidelines for the new projects and amending measures for steel capacity replacement and strengthen the monitoring of the iron and steel industry.
NDRC and other ministries will focus on accelerating the transformation of steel industries in the Beijing Tinajin Hebei industrial belt and other eco-sensitive to reduce emission and implement strict environmental norms.