6 key points about China's upcoming steel masterplan

China, which is finalizing a new masterplan that will form the core of its policies for the ferrous sector in its 14th Five-Year Plan, is seeking input from steel market participants, its Ministry of Industry & Information Technology (MIIT) said on December 31.

The country will adhere to a new development concept, which will put emphasis on green and low-carbon ferrous development that will support its “dual circulation economy” model, as well as implement reforms that promote quality-driven steelmaking, the MIIT said. The draft masterplan specifies that market forces will be given full play in the allocation of resources and emphasizes the stability of policy. The following are six key points contained in the draft: 1. More crude steel output cuts China will cut its steel output from 2021 to curb carbon emissions. Among new measures the Chinese government is mulling over is a strict ban on new steelmaking capacity, even as it phases out obsolete capacity. It will also prevent a resurgence of idled capacity and induction furnaces. "China will guide iron and steel companies to abandon the thought of 'winning by quantity' and establish a production restriction mechanism based on carbon emissions, pollutant emissions,...

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Jessica Zong

Paul Lim

Miranda Song

January 04, 2021

09:30 GMT

Shanghai