From Morgan Stanley:
MIIT targets to reduce 80mnt steel capacity and to limit steel companies to within 300 in the next three years: MIIT targets to reduce 80mnt steel capacity within three years and to limit the number of steel companies to within 300 from the current 500 during the same period. By 2025 the top 10 steel mills’ market share in China (by crude steel production) will increase to at least 60% from 36.6% at the end of 2014. Meanwhile, China will form 3-5 ultra-large and globally competitive steel companies.
China adopted stricter environmental control: According to the revised environmental protection law, extra fines accumulating on a daily basis will be imposed on enterprises that fail to rectify violations, and there is no upper limit on this. Hebei reported 35 major violation cases and has fined 10 enterprises on a daily basis this year.
And supply is now locked in. Pass the popcorn.
