China tightens steel capacity swap rules amid industry structural adjustment

China's Ministry of Industry and Information Technology (MIIT) issued a revised version of its steel capacity swap guidelines on May 18, introducing stricter replacement requirements, more targeted policy incentives, and stronger oversight mechanisms.

The revision comes amid evolving supply-demand conditions in China's steel sector and ongoing efforts to deepen supply-side reform, reinforce earlier steel capacity cuts, and curb disorderly competition, while supporting the sector's higher-quality development, MIIT noted. On October 24 2025, MIIT released a draft version of the revised guidelines for public