China to cut steel production by at least 25 million tons in 2025

Chinese government agencies have unveiled a plan to stabilize the steel industry for 2025-2026, which involves reducing production and tightening control over companies in the industry. According to market estimates, steel output in 2025 will be less than 980 million tons, which is at least 25 million tons lower than in 2024 (1.005 billion tons). This was reported by SteelOrbis.

The document, developed by the Ministry of Industry and Information Technology, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Commerce, and the State Administration of Market Regulation, does not set specific reduction targets. Instead, it refers to “precise regulation” of capacities, the closure of obsolete equipment, and support for high-tech production. The added value of metallurgy in 2025-2026 is expected to grow by an average of 4% annually.

In January-July 2025, steel production in China fell by 3.1% y/y – to 594.47 million tons, which means a drop of 19 million tons compared to the same period in 2024. Representatives of Chinese factories note that the rate of decline has slowed down compared to what was predicted at the beginning of the year, when there was talk of a potential reduction of 50 million tons.

The key areas of state policy will be to reduce overall steel production and implement “categorised management” of enterprises, i.e. the classification of plants according to efficiency and environmental standards, followed by regulatory measures.

In 2024, China produced 1.005 billion tonnes of steel, 1.7% less than a year earlier.

Earlier, the Chinese Iron and Steel Association (CISA) called on the country’s steel companies to self-regulate steel production and stabilize prices for steel products.