I am hoping it is because China may be addressing their overcapacity issues:
While it is still unclear when these cutbacks will actually begin, it is worth noting that the absence of a fixed timeline gives the government a degree of flexibility so it can gauge international and domestic reactions to the news and still make last-minute adjustments. More concrete details are likely to emerge at the presentation of China’s 13th five-year plan at the National People’s Congress on Saturday. Turning an economy as large as China’s around is a bit like altering course on a gigantic ocean liner. It requires space and time to maneuver, and mostly extreme care.
The changes announced so far aim at reducing steel production capacity by 150 million tons and coal by 500 million tons over a three to five-year period. The cuts will eliminate 1.3 million jobs in the coal sector and another 500,000 in the steel industry. Altogether that represents about 15% of both sectors’ workforce. Beijing has officially set aside $15.3 billion to reallocate and retrain workers affected by layoffs in these two industries, and China’s Central Bank injected $100 billion into the economy on Monday to help ease the pain of the transition. And the cuts may eventually go deeper. Reuters, quoting “informed sources” close to the leadership, reported that 5 million to 6 million workers might eventually be affected, and that the cost could go as high as $23 billion.