CISA calls on Chinese steelmakers to self-regulate production

The China Iron and Steel Association (CISA) is calling on the country’s steelmakers to self-regulate steel production and stabilize prices for metal products, according to SteelOrbis.

CISA President Zhao Ming said at an association event that the main issue in the country’s steel industry in the near future will be the imbalance between supply and demand. He called on steel companies to take various measures, focus their efforts on strengthening self-discipline, and promote the stable, orderly, and high-quality development of the industry.

According to the latest monthly report from CISA, as reported by Mysteel, steel prices in China are primarily driven by supply dynamics amid weakening demand for rolled products and sufficient supply of raw materials.

The association noted that domestic demand for steel has weakened further since July due to the increasing impact of seasonal weather factors. Steel production in China also declined in early July. Daily smelting volumes among CISA member plants averaged 2.1 million tons per day, down 1.5% from the average at the end of June.

The association warned that global trade would face increasing obstacles in the second half of this year, particularly due to uncertainty over US trade policy and geopolitical tensions, which could put further pressure on the global economic recovery.

CISA suggested that amid global uncertainty and insufficient domestic demand, the Chinese government may introduce gradual stimulus policies during the third quarter to ensure annual GDP growth targets.

In addition to rationalizing production, Chinese steelmakers were advised to monitor changes in global steel demand and the impact of trade protectionism in order to adjust their export strategies to mitigate risks.

In the first half of this year, China reduced steel production to its lowest level since 2020 – 514.8 million tons (-3% y/y). At the same time, the country’s steel enterprises increased steel exports by 9.2% in January-June compared to the same period in 2024, to 58.15 million tons.