China unveils 2025-2026 steel industry plan, targeting 4% annual growth

China has issued a two-year action plan for its steel sector, setting an average annual growth target of around 4% in industrial added value for 2025-2026. The blueprint, released on September 22 by five government ministries including the Ministry of Industry and Information Technology (MIIT), aims to restore the steel sector's profitability, balance steel market supply and demand, optimize industry structure, and accelerate the sector's green and digital transformation.

The action plan notes that to tackle overcapacity and sluggish demand, the steel sector will strictly prohibit new capacity, enforce production cuts, and encourage higher-quality output. It also supports technologies such as hydrogen metallurgy, electric furnaces, and specialty steel, while promoting industry consolidation. Inefficient steel plants will be phased