LONDON, Dec. 14, 2018
LONDON, Dec. 14, 2018 /PRNewswire/ --
China's Ministry of Industry and Information Technology recently released an updated "Industry Transformation Guide" (The Guide). This document is one of a type the Government releases from time to time in order to restate or extend a policy position, and publicly set expectations for the broad policy framework it expects industry to operate within. Therefore, it is different from policy documents which are more explicit on stricter implementation criteria, such as the winter heating season cutback policy.
The Guide also reiterates the Government's determination that the domestic steel industry is to focus on quality over quantity, which means that the industry should prioritise value-added steel production while keeping any new ironmaking and steelmaking capacity additions under control. The 200-page document includes recommendations detailed at a provincial level to maximise geographical advantages. For the steel industry, it therefore sets out product-wise provincial principles and draws a blue print which focuses heavy-end production away from environmental sensitive areas like Beijing, Tianjin and Hebei, to geographically advantageous regions as a very important step in overall industry transformation.
It is important to know that The Guide does not change any existing policy measures but serves to reinforce or augment them. An example is capacity elimination policy and the capacity swap within that which we previously analysed. Moreover, The Guide extends further with instructions and suggestions at provincial level to facilitate existing capacity elimination and capacity swap policy implementation.
Quality over quantity - The Guide in brief
In summary, The Guide sets forth China's broad approach to industrial development strategy by setting national guidelines and regional targets while sticking to the principle of efficient market resource allocation with government instructions. Specifically, the document reiterates the focus on quality over quantity in the steel sector, which means that domestic steel should prioritise value-added and high-quality production while keeping any new ironmaking and steelmaking capacity additions in strict control.
Read more about CRU: http://bit.ly/About_CRU
CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.
Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.
CRU employs over 260 experts and has more than 10 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004.
When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.
CRU – big enough to deliver a high-quality service, small enough to care about all of our customers.