China has made plans to cut steel output in 2021
China's Ministry of Industry and Information Technology has released a series of measures to accelerate the reduction of steel output. Includes:
- a ban on illegal additions of new capacity
- bolstering its guidance on capacity swaps
- push for mergers/restructuring the steel industry to solve long-term issues around competition, unreasonable resource allocation and weak synergies
MIIT says its firmly committed to having steel output wold fall in 2021, will focus on carbon emission targets.
This will have negative implications for Australian iron ore, and thus the AUD, at the margin.