China | Steel Regulators Target Below-Cost Sales and Excess Production
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- Chinese regulators and the China Iron and Steel Association have introduced measures to curb aggressive price competition.
- CISA called on steelmakers to exercise production discipline, reduce inventories and avoid selling steel below cost.
- Fewer than 10% of Chinese steel mills were estimated to be profitable in mid-September.
- Any meaningful production cuts would reduce Chinese demand for iron ore, coking coal and coke.
- The policy could eventually support steel prices, but enforcement and compliance by individual mills remain uncertain.
