On August 23, China's Ministry of Industry and Information Technology (MIIT) issued a notice regarding the halting of steel capacity replacement.

They highlighted that the relaxation of the requirement on the utilization rate of new energy may create about 74 gigawatts of new installations, bringing multiple benefits to key sectors.

The use of green and low-carbon technologies in emerging sectors is another priority of the policy document.

These were major goals set in a development guideline jointly released by the Ministry of Industry and Information Technology, National Development and Reform Commission, and the Ministry of Ecology and Environment.

Zhang said he believes China Baowu Steel Group, and Anshan Iron & Steel (Ansteel) and Benxi Iron & Steel (Bensteel) are potential M&A candidates.

Rise to balance demand, supply, and cut output, energy use for green goals.

In 2020, crude steel output rose by 5.2 percent year on year to exceed 1.05 billion tonnes, according to the China Iron and Steel Association.

Export tariffs on ferrosilicon, ferrochrome, high-purity pig iron would be raised to 25 percent, 20 percent and 15 percent, respectively.