China steps up fight against vicious price wars with new steel industry plan
The action plan, which imposes a strict ban on extra capacity, could be a blueprint for other sectors plagued by price wars, analysts say
The plan, which includes a strict ban on additional capacity and moves to accelerate the phase-out of outdated equipment, could become a blueprint for other industries suffering from overproduction and excessive competition, analysts said.
Released by the Ministry of Industry and Information Technology in collaboration with several other government departments on Monday, the document called for precise controls on steel capacity and output, while stressing that “coordinated efforts on both the supply and demand ends” were needed to stabilise the industry.
The aim is to “accelerate the transformation from old to new growth drivers, cultivate new productive forces, and further enhance the resilience and security of industrial and supply chains”, according to the plan.
The steel industry should target average annual growth of about 4 per cent in value-added output over the next two years and ensure that ultra-low emission upgrades are completed on more than 80 per cent of steel production capacity by the end of this year, it added.