China shutting down steel capacity unlikely to change global situation

The closure comprises only 9% of the low quality steel capacity

China shutting down part of its steel capacity is not going to bring material change to the global demand-supply equation of the commodity.
 

The news reports about the country's decision to close down low quality steel capacity on Wednesday took stock prices of domestic steel majors such as Tata Steel, JSW Steel, Jindal Steel & Power, Bhushan Steel, and Steel Authority of India up between 4% to 11% on the BSE.

This closure, however, comprises only 9% of the low quality steel capacity which is again a small portion of the total 1.13 billion tonne steel capacity of the country.