China’s Ministry of Industry and Information Technology has unveiled a two-year plan to stabilize growth in the steel sector while curbing overcapacity. The blueprint sets a target of 4% annual value-added growth and includes strict prohibitions on expanding production capacity. Policy tools will focus on capacity controls, differentiated management, and directing resources toward leading firms.
The plan highlights the importance of balancing supply and demand through output adjustments and industrial upgrades. It also prioritizes modernization and low-carbon development, with outdated facilities such as blast furnaces and converters to be phased out. By 2025, more than 80% of steelmaking capacity must comply with ultra-low emissions standards.
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China’s steel plan signals tighter supply discipline, supporting margins for major producers while accelerating green investment. Strict emissions standards may raise costs in the near term, but consolidation and capacity controls aim to stabilize growth and reduce overcapacity.
