China's ferrous futures prices turned around to surge late in the afternoon on Monday, January 8 after the country's officials declared stricter steel capacity replacement criteria to be implemented from this year.
The production facilities that will be allowed to have capacity replaced will only include those recorded in capacity replacement plans approved by local or central governments in 2016 and those that were constructed legally from 2016 onwards, according to a filing released by China's Ministry of Industry and Information Technology (MIIT).Production facilities that are part of overcapacity cutting programmes, have enjoyed governmental allowances or been classified as producing substandard steel will not be...