Steel Gains as China Curbs Overcapacity

2026-03-06 06:28 By Jam Kaimo Samonte 1 min. read

Steel rebar futures rose above CNY 3,080 per ton, approaching one-month highs as China renewed its pledge to support the steel sector by curbing excess capacity.

Economic planners at the National People’s Congress signaled plans for orderly reductions in steel capacity, a move that could lift steel prices and improve profit margins.

Chinese steel mills continue to face pressure from persistent oversupply amid a prolonged property sector downturn, while steel exports are increasingly constrained by protectionist measures abroad.

Beijing issued similar pledges during the 2025 policy meetings, though the outcomes were mixed.

The country’s steel output fell below 1 billion tons last year for the first time since 2019, although some analysts questioned the reliability of the official figures.

China also set a 2026 GDP growth target of 4.5%–5%, the lowest since the early 1990s, as policymakers grapple with ongoing deflationary pressures and higher US tariffs.



News Stream
Steel Gains as China Curbs Overcapacity
Steel rebar futures rose above CNY 3,080 per ton, approaching one-month highs as China renewed its pledge to support the steel sector by curbing excess capacity. Economic planners at the National People’s Congress signaled plans for orderly reductions in steel capacity, a move that could lift steel prices and improve profit margins. Chinese steel mills continue to face pressure from persistent oversupply amid a prolonged property sector downturn, while steel exports are increasingly constrained by protectionist measures abroad. Beijing issued similar pledges during the 2025 policy meetings, though the outcomes were mixed. The country’s steel output fell below 1 billion tons last year for the first time since 2019, although some analysts questioned the reliability of the official figures. China also set a 2026 GDP growth target of 4.5%–5%, the lowest since the early 1990s, as policymakers grapple with ongoing deflationary pressures and higher US tariffs.
2026-03-06
Steel Holds Steady as China Targets Overcapacity
Steel rebar futures held steady above CNY 3,070 per ton, hovering near one-month highs after China reaffirmed its commitment to curb overcapacity in the steel sector, aiming to strengthen the industry’s overall health. Chinese steel mills remain under pressure from persistent oversupply amid a prolonged property downturn, while steel exports are increasingly constrained by protectionist measures in overseas markets. Beijing issued similar pledges during the 2025 policy meetings, though the results were mixed. The country’s steel output fell below 1 billion tons last year for the first time since 2019, although some analysts questioned the reliability of the official figures. China also set a 2026 GDP growth target of 4.5%–5%, the lowest since the early 1990s, as policymakers contend with ongoing deflationary pressures and higher US tariffs.
2026-03-05
Steel Rises Amid China Output Curbs
Steel rebar futures climbed toward CNY 3,070 per ton, nearing four-week highs as Chinese authorities ordered production cuts across northern steelmaking hubs to curb pollution during the annual sessions of the National People's Congress. Under the so-called “blue skies” directive, mills were instructed to reduce blast furnace output by 30% for one week starting March 4 to limit emissions in Beijing during the high-profile political meetings. Tighter supply has provided short-term support to prices, as reduced output typically improves profitability and margins for steel producers. However, demand in top consumer China remained soft following the Lunar New Year holiday, and analysts expect steel consumption to ease in the first half of the year amid persistent weakness in the property sector and cautious industrial activity.
2026-03-03