China cracks down further on the materials industry in its bid to reduce emissions and conserve power
There is just so much regulatory involvement in Chinese industries right now that it is getting tough to keep up with the headlines. The latest move by Yunnan here is part of China's efforts to curb steel production in order to cut emissions.
Demand conditions are expected to keep up but China's continued crackdown (which had begun since earlier this year) on supply is seeing prices shoot higher now.
Aluminium hit $3,000 for the first time since 2008 and the headlines above won't help to ease the upside pressure on prices, with Yunnan roughly hosting 60% of the industry's new capacity this year, according to a Huajin Securities report.
The cement industry is also one that is targeted heavily as it accounts for 83% of carbon emissions from the non-metals construction materials sector.