Tang Eng Iron Works Co., Ltd., one of the major stainless steel producers in Taiwan, foresees a positive market outlook after China's new draft steel policy focused on controlling total capacity, improving quality, and promoting transformation. The policy is expected to stabilize the stainless steel market.

The draft regulations raise capacity replacement ratios, for example, 1.5:1 for new capacity, and ban new expansion in key regions like the Beijing-Tianjin-Hebei region and the Yangtze River Delta. This move will raise entry barriers, accelerate industry consolidation, and reduce low-price competition.

Tang Eng expects the policy will favor large-scale, technologically advanced stainless steel companies, strengthening its market position. The company plans to intensify R&D and environmental investments to capitalize on the industry’s transformation toward high-end production.