{"id":7371,"date":"2025-09-21T13:30:04","date_gmt":"2025-09-21T10:04:20","guid":{"rendered":"https:\/\/steelworldreview.com\/china-announces-steel-production-cuts-and-capacity-reduction\/"},"modified":"2025-09-21T13:52:09","modified_gmt":"2025-09-21T10:22:09","slug":"china-steel-production-cut","status":"publish","type":"post","link":"https:\/\/steelworldreview.com\/en\/china-steel-production-cut\/","title":{"rendered":"China Announces Steel Production Cuts and Capacity Reduction"},"content":{"rendered":"

China intends to reduce steel production<\/a> and eliminate excess capacity.<\/p>\n

Summary:<\/p>\n

China has seriously limited new capacities and will reduce production.<\/p>\n

China will enforce the closure of old and inefficient steel capacities.<\/p>\n

China is increasing efforts to ensure supply and stabilize prices of iron ore<\/a> and coking coal.<\/p>\n

Beijing, August 28 (Reuters) \u2013 According to an official document reviewed by Reuters and confirmed by an informed source, China plans to reduce steel production<\/a> between 2025 and 2026. This measure aims to tackle excess capacity, which has been putting pressure on prices and prompting global support responses. <\/p>\n

The world\u2019s largest steel producer has seriously limited new capacities and will reduce production, according to the planning document issued by the Ministry of Industry, Ministry of Environment, and other agencies.<\/p>\n

The document states: \u201cThe steel industry is currently facing excess supply and insufficient effective demand, resulting in a mismatch between supply and demand that affects the quality and efficiency of development.\u201d <\/p>\n

The document does not specify the exact production reduction targets promised by the government earlier this year. Crude steel production in the first seven months of this year fell by 3.1%.<\/p>\n

It is mentioned in the document that China will achieve annual steel production reduction through the closure of old and inefficient blast furnaces and support for the development of advanced companies.<\/p>\n

China\u2019s Ministries of Industry and Commerce have not yet responded to Reuters\u2019 request for comment.<\/p>\n

An informed source confirmed the authenticity of the document and stated that this is the final draft. Due to the sensitivity of the issue, the source requested anonymity. <\/p>\n

China\u2019s 2023 attempt to restructure the industry partly failed, as Beijing had sent mixed signals to steelmakers regarding its seriousness in addressing excess capacity.<\/p>\n

The new plan includes a goal of 4% annual growth in the industry\u2019s value-added, investment in advanced technologies, and promotion of steel use in infrastructure and residential buildings, raising questions about Beijing\u2019s level of ambition at this stage.<\/p>\n

In addition, according to the document, Beijing will step up efforts to ensure supply and stabilize the prices of raw materials, including iron ore and coking coal.<\/p>\n","protected":false},"excerpt":{"rendered":"

China intends to reduce steel production and eliminate excess capacity. Summary: China has seriously limited new capacities and will reduce production. China will enforce the closure of old and inefficient steel capacities. China is increasing efforts to ensure supply and stabilize prices of iron ore and coking coal. Beijing, August 28 (Reuters) \u2013 According to […]<\/p>\n","protected":false},"author":1,"featured_media":7368,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_review":[],"enable_review":"","type":"","name":"","summary":"","brand":"","sku":"","good":[],"bad":[],"score_override":"","override_value":"","rating":[],"price":[],"jnews_override_counter":{"view_counter_number":"0","share_counter_number":"0","like_counter_number":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[240,220],"tags":[883,1054],"class_list":["post-7371","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world_steel_news","category-jahan-foulad-news","tag-883","tag--en"],"yoast_head":"\nChina Announces Steel Production Cuts and Capacity Reduction - steelworldreview<\/title>\n<meta name=\"description\" content=\"China 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