Steel could shine in 2017 as China expands capacity controls

SHANGHAI: China has handed the resurgent global steel industry an early boost for next year, with a clampdown on illegal mills that Citigroup Inc says could benefit the world’s biggest producers.

A campaign by China to shutter some induction furnaces, which use scrap as a raw material, may hit as much as 5% of the country’s output, bank analysts including Jack Shang and Tracy Liao wrote in a note received yesterday.