China will “strictly” curb new capacity in the steel sector, state broadcaster CCTV reported, as the world’s biggest steel producer tackles over-capacity that has pushed down prices and sparked a protectionist backlash abroad.

The Ministry of Industry and Information Technology together with other departments plan to stabilise growth in the sector in 2025 and 2026, CCTV reported.

“The plan involves implementing precise regulation of production capacity and output… and strictly curbing the addition of new production capacity,” the broadcaster said.

Steelmakers are required to speed up the elimination of outdated equipment, especially old blast furnaces and converters, CCTV reported.

Reuters in late August reported this plan to cut steel output in 2025 and 2026, citing document and a person with knowledge of the matter.
Source: Reuters