China To Issue Iron Steel Industry Restructuring And Development Plan

China is expected to issue its “Iron and Steel Industry Restructuring and Development Action Plan for 2015-2017” in the near future, as stated by Shanghai Securities News on June 15. Targets within the scope of the plan include the elimination of 80 million mt of outdated iron and steel capacity to ease oversupply, the reduction of the number of steelmakers in China to around 300, the promotion of mergers and reorganization among steelmakers and the achievement of zero growth in overall energy consumption.

Meanwhile, market insiders have commented that recent policies issued by the Chinese government, including increasing investment in infrastructure, encouraging investment in real estate and boosting exports of high-end equipment manufacturing, will exert a positive impact on the steel industry.