The China Iron and Steel Association (CISA) has indicated that China will tighten capacity controls and accelerate structural reforms across its steel sector.
Speaking at the 2026 Steel High-Quality Development Conference in Beijing, CISA Vice President Xia Nong said authorities will:
- Strictly prohibit new steel capacity additions
- Accelerate the closure of outdated and inefficient mills
- Improve product quality and carbon efficiency
- Expand digital and intelligent manufacturing
Supply-Demand Imbalance Remains
Official data showed that in 2025:
- Crude steel production fell 4.4% to 961 million mt
- Steel consumption dropped 7.1% to 829 million mt
- Finished steel output rose 3.1% to 1.45 billion mt
Manufacturing Overtakes Construction
A major shift in steel demand was also reported:
- Manufacturing accounted for 51% of demand in 2025
- Construction fell to 49%, down from 58% in 2020
The move highlights China’s transition toward higher-value industrial steel consumption.
VietnamSteel by Hoa Sen Group
