China will take measures to reduce steel output in 2025-2026, Reuters writes, citing an informed source and an official document from the ministries of industry, environment and others it has consulted. According to the document, the world’s largest steel producer will also severely limit new capacity.
“The steel industry has faced overcapacity and insufficient effective demand, resulting in a supply-demand imbalance affecting the quality and efficiency of development,” the document said.
The document does not set production reduction targets. However, it notes, such reduction will be achieved by closing obsolete and inefficient furnaces and supporting the development of advanced enterprises.
At the same time, it plans to increase the industry’s value-added by 4% per year, invest in new technologies and encourage the use of steel in housing and infrastructure construction.
Beijing will also strengthen measures to ensure stability in the cost and supply of raw materials, including iron ore and coking coal, and take steps to strengthen the management of steel exports, the document said. An informed source confirmed the authenticity of the document and said it was the latest version.
