NUMBER OF THE DAY
Beijing caps steel industry growth at this rate through 2027 to tackle chronic overproduction.
🏭 Top-Down Crackdown: No new steel plants allowed, old blast furnaces must go, and 80% of production must meet ultra-low emission standards. Companies ranked by performance, poor performers get axed.
🎯 End of Price Wars: "Neijuan" (内卷) is Chinese for ruinous price competition. The 4% cap aims to restore profits and could become the blueprint for other overproduction sectors.
Watch: China produces half the world's steel, but the sector has suffered from overcapacity for over a decade. With the domestic property crash since 2021 and current international anti-dumping measures, the problem has become acute.
👉 The cap is Beijing's attempt to bring order to chaos.
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