MIIT issues revised steel capacity swap implementation rules
2026-05-19 15:01:57 [Print]
China's Ministry of Industry and Information Technology (MIIT) has issued revised rules on capacity replacement for the steel sector, further tightening requirements to curb overcapacity and promote high-quality development.
Key revisions include:
Higher replacement ratios. Nationwide, both ironmaking and steelmaking capacity replacement ratios must be no less than 1.5:1. For mergers and acquisitions, the ratio has been raised to no less than 1.25:1.
Phase-out of inter-company capacity swaps. A two-year transition period will be in place for capacity transfers between different companies. After this period, capacity can only be transferred through substantive mergers and acquisitions.
Validity period. Capacity replacement plans will now have a validity period of 24 months.
Key revisions include:
Higher replacement ratios. Nationwide, both ironmaking and steelmaking capacity replacement ratios must be no less than 1.5:1. For mergers and acquisitions, the ratio has been raised to no less than 1.25:1.
Phase-out of inter-company capacity swaps. A two-year transition period will be in place for capacity transfers between different companies. After this period, capacity can only be transferred through substantive mergers and acquisitions.
Validity period. Capacity replacement plans will now have a validity period of 24 months.
