China Puts Brake on New Steel Mills as Industry Hit by Glut

(Bloomberg) — China has abruptly suspended its system for approving new steel plants, as the government responds to a deep slump in demand that has crushed industry profits and fueled a surge of exports.

Beijing has in the past required the elimination of existing capacity before approving new plants. Those rules will no longer apply from Friday and the government is to develop an alternative program, the Ministry of Industry and Information Technology said in a statement.