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overcapacity

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overcapacity

Situation where total production capability outstrips demand. This may be a temporary situation caused by normal market cycles, or a brief economic downturn. The reasons may also be structural, such as the decline of a market. In this case companies in the market will have to restructure, diversify, or go in to liquidation.
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Earlier this month, China launched its latest attempt to rein in industrial overcapacity targeting key sectors, chief among them steel and cement.
Renewable curbs a boon to big players by Oil & Gas News
Byline: Reuters BEIJING: China on Monday launched the latest in a long list of attempts to rein in industrial overcapacity to keep its fast-growing economy on an even keel and prevent investment from going to waste.
China tries, again, to curb industrial overcapacity by Times of Oman (Muscat, Oman)
In a new report on the global reinsurance sector, Moody's Investors Service concludes that restrained demand, overcapacity and fragile market confidence point to a higher chance that credit support will weaken rather than improve over the next 12 to 18 months.
Moody's sees negative outlook for global reinsurance by Financial Mirror (Cyprus)
 
 
 
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