{"id":7682,"date":"2025-12-12T02:51:35","date_gmt":"2025-12-11T23:21:35","guid":{"rendered":"https:\/\/steelworldreview.com\/chinas-excess-steelmaking-capacity-is-unlikely-to-be-resolved-anytime-soon\/"},"modified":"2026-02-14T13:49:40","modified_gmt":"2026-02-14T10:19:40","slug":"chinas-excess-steelmaking-capacity-is-unlikely-to-be-resolved-anytime-soon","status":"publish","type":"post","link":"https:\/\/steelworldreview.com\/en\/chinas-excess-steelmaking-capacity-is-unlikely-to-be-resolved-anytime-soon\/","title":{"rendered":"China\u2019s excess steelmaking capacity is unlikely to be resolved anytime soon."},"content":{"rendered":"<p dir=\"ltr\" style=\"text-align: justify\"><a href=\"https:\/\/worldsteel.org\">Worldsteel<\/a> Statement: China\u2019s excess steelmaking capacity is unlikely to be resolved anytime soon.<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">10 December 2025 \u2013 According to the steel-industry outlet Steel World Review.<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">Edwin Basson, Director General of the World Steel Association (Worldsteel), stated that China\u2019s chronic excess steelmaking capacity, a persistent structural oversupply, cannot be adjusted in the short term due to its deep linkage with the country\u2019s economic structure.<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">He explained in an interview with Bloomberg:<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">\u201cShutting down a steel plant affects a chain of domestic sectors across China\u2019s economy. Therefore, there is no quick or low-cost solution for reducing capacity.\u201d<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">The expanding trend of trade restrictions against Chinese steel<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">Basson noted that steel was one of the first sectors targeted by U.S. import tariffs, and that other countries, including Vietnam, have also imposed anti-dumping duties on Chinese steel products. He added:<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">\u201cThis trend has effectively pushed back nearly 20 years of relatively free steel trade. The open market that existed between 2000 and 2020 is now disappearing. The free movement of goods across continents has become a major challenge.\u201d<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">Declining domestic demand and China\u2019s new export highs<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">According to Worldsteel, China\u2019s steel demand will decline by about 2 percent in 2025, followed by a further 1 percent drop in 2026.<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">As a result, Chinese producers have turned to the export market, and despite the restrictive trade environment, China\u2019s steel exports in the first eleven months of 2025 surpassed 100 million tonnes, approaching a historic record.<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">This trend has also pushed China\u2019s trade surplus beyond the one-trillion-dollar mark for the first time.<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">Meanwhile, iron ore futures on the Singapore Exchange fell 0.9 percent on the first trading day of the week, reaching 102.45 dollars per tonne.<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">A Fragmented Global Market and the Difficult Path Toward \u201cLow-Carbon Steel\u201d<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">Rezwan Jangua, Worldsteel\u2019s Head of Technology, warned that the fragmentation of the global steel market has created obstacles for the industry\u2019s decarbonization efforts.<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">He said:<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">\u201cSteel accounts for about 8 percent of global carbon emissions. Decarbonizing this sector requires an unprecedented level of international cooperation. However, the more fragmented the markets become, the harder it is to achieve the necessary coordination.\u201d<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">He emphasized that decarbonization technologies do exist, but challenges such as energy supply, costs, and policy misalignment have slowed progress:<\/p>\n<p dir=\"ltr\" style=\"text-align: justify\">\u201cIf countries do not act in coordination, each will only optimize its own system, and no global outcome will be achieved.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Worldsteel Statement: China\u2019s excess steelmaking capacity is unlikely to be resolved anytime soon. 10 December 2025 \u2013 According to the steel-industry outlet Steel World Review. Edwin Basson, Director General of the World Steel Association (Worldsteel), stated that China\u2019s chronic excess steelmaking capacity, a persistent structural oversupply, cannot be adjusted in the short term due to [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":7679,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard"},"jnews_primary_category":[],"jnews_review":[],"enable_review":"","type":"","name":"","summary":"","brand":"","sku":"","good":[],"bad":[],"score_override":"","override_value":"","rating":[],"price":[],"jnews_override_counter":[],"footnotes":""},"categories":[240],"tags":[812,389,1139],"class_list":["post-7682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world_steel_news","tag-chinese-steel","tag-steel-world-review","tag-tariff"],"yoast_head":"<!-- This site is optimized with the 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