China Implements Stricter Steel Industry Capacity Replacement Policy

The Ministry of Industry and Information Technology (MIIT) of China has announced new rules governing capacity replacement in the Iron and Steel Industry. The updated policy mandates that the capacity replacement ratios for ironmaking and steelmaking operations across the country must be no less than 1.5:1, except for heavily polluting mills, which will maintain a ratio of 1.25:1. Moreover, the replacement ratio for capacity involved in mergers and reorganizations will be increased to a minimum of 1.25:1. China is also phasing out capacity replacement between different enterprises to promote industry consolidation. A two-year transition period will be implemented for capacity…