Some Chinese steelmakers are choosing to leave the market according to a document released by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). Most steel companies on the list saw their production registration cancelled because either they chose not to renew or applied to have their registration cancelled, Kallanish notes.

On 25 January AQSIQ circulated a notice saying that 433 industrial firms’ registration certificates are being cancelled. The list includes 17 steel companies that mainly produce rebar, bearing steel and wire rope, most of which are small private steelmakers.

The steel profits of major Chinese companies increased over 2016-2017. The stricter environmental policy, cost and higher puchasing costs for processors have also pushed lots of smaller steel companies to close down however.

Chinese steel companies - Cancelled production registration certificates in 2017

Source: AQSIQ