Call for Steel Producers in China to Limit Capacity
The country's leading steel producers and industry association have decided to reduce inventories due to falling demand and overcapacity.
The China Iron and Steel Association and leading producers have called for curbs on steel production in order to cope with weakening domestic demand and chronic overcapacity issues.
Production Controls and Call for Self-Discipline
The China Iron and Steel Association urged steel producers to strictly implement production controls in a statement via its WeChat account.
The statement emphasized that businesses must show greater self-discipline regarding limiting production and reducing inventories.
Joint Initiative from Major Producers
44 of the country's leading steel producers, including China Baowu Steel Group and Shougang Group, jointly initiated this call.
This move was recorded as the latest step aimed at reigning in the massive steel industry, which has an annual capacity of approximately 1 billion ton.
Demand Drop and Sectoral Pressures
China's steel industry is experiencing chronic overcapacity due to the stagnation in the real estate sector and the slowdown in infrastructure investments.
Weakening domestic demand and rising inventories are causing steel prices to drop and sector profits to decrease significantly.