China Plans Steel Output Cuts for 2025/26 to Curb Overcapacity

2025-08-28 04:58 By Farida Husna 1 min. read

China will push to lower steel production between 2025 and 2026, according to an official document reviewed by Reuters.

The world’s largest steelmaker pledged in March to restructure its giant industry, but withheld details on the scale and timing of reductions.

Official data showed crude steel output fell 3.1% in the first seven months of this year from a year earlier to 594.47 million tonnes.

The planned curbs align with Beijing’s goal of peaking carbon emissions by 2030 and tackling chronic overcapacity that has long pressured global markets.

Past attempts at production discipline have often faltered as local governments prioritized growth.

At the same time, slowing demand from China’s property sector has already curbed consumption, raising doubts on whether cuts reflect policy drive or weaker fundamentals.

Still, tighter Chinese supply could lend support to global steel prices as India and Southeast Asia expand infrastructure-led demand.



News Stream
Beijing Targets Excess Steel Output in New Crackdown
China will “strictly” curb new steel production capacity, state broadcaster CCTV reported Monday, as the country moves to tackle overcapacity that has depressed prices and triggered protectionist responses abroad. The Ministry of Industry and Information Technology, along with other departments, aims to stabilize growth in the sector through 2025 and 2026. “The plan involves implementing precise regulation of production capacity and output... and strictly curbing the addition of new production capacity,” CCTV said. Steelmakers will be required to accelerate the phase-out of outdated equipment, particularly old blast furnaces and converters. Reuters previously reported in August that China was preparing to cut steel output over the next two years, citing internal documents and a source familiar with the matter.
2025-09-22
China Plans Steel Output Cuts for 2025/26 to Curb Overcapacity
China will push to lower steel production between 2025 and 2026, according to an official document reviewed by Reuters. The world’s largest steelmaker pledged in March to restructure its giant industry, but withheld details on the scale and timing of reductions. Official data showed crude steel output fell 3.1% in the first seven months of this year from a year earlier to 594.47 million tonnes. The planned curbs align with Beijing’s goal of peaking carbon emissions by 2030 and tackling chronic overcapacity that has long pressured global markets. Past attempts at production discipline have often faltered as local governments prioritized growth. At the same time, slowing demand from China’s property sector has already curbed consumption, raising doubts on whether cuts reflect policy drive or weaker fundamentals. Still, tighter Chinese supply could lend support to global steel prices as India and Southeast Asia expand infrastructure-led demand.
2025-08-28