China pledges to control steel output during 2026-2030 period

(Corrects to show China ⁠unveiled a ⁠plan ‍for an export licensing system on December 12, not last week, in paragraph 8)

BEIJING, Dec 26 (Reuters) - China ‍on Friday said it will continue to regulate crude ​steel output and prohibit the addition of illegal new capacity from 2026 ​to 2030.

In 2021, the world's largest steel producer and consumer put an end to growth in crude steel output as part of a plan ​to limit carbon emissions.

The mandated output control also came as domestic steel consumption was hit by a protracted property ​market downturn, which left the industry plagued with overcapacity.

In the first 11 months of ‌2025, China's crude steel output fell 4% from a year earlier, keeping the annual total on track ​to fall below 1 billion tons, ⁠the first time in six years.

"The raw materials industry including steel is currently facing the problem ‌of an insufficient supply-demand balance," said the National Development and Reform Commission, the state planner, in a statement.

"The raw material industry needs ‌to deepen supply-side reform during the Fifteenth Five-Year Plan (2026-2030) ... survival of the ‌fittest is promoted," it added.

Since 2023, China's steel exports have been robust, partly offsetting falling demand at home. But they have sparked a protectionist ‍backlash worldwide with trade barriers being enforced by a growing number of countries that say China's ⁠cheap products damage local manufacturers.

On December 12, Beijing unveiled a plan to roll out a licensing system from 2026 to regulate exports of some 300 steel-related items.

(Reporting by Amy Lv and Ryan Woo; Editing by Thomas Derpinghaus)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Where are the next commodity opportunities?
• Trump, officials discuss expanded refinery waivers as farm backlash grows, sources say
• Google agrees to settle UK app developers' lawsuit for $353 million