The Chinese government is rolling out new policies to regulate steel makers. And it could force a number of smaller companies out of the market.
Under the regulation, issued by the Ministry of Industry and Information Technology, Chinese steel makers must meet comprehensive standards. They cover production capacity, energy consumption, environmental protection, and emissions.
Analysts say the policy could give large-scale steel makers a competitive edge. But push the smaller ones, that account for less than 20 percent of China's annual steel output, out of business. The move is an effort to fight over-capacity in the industry.