China Announces Cut in Steel Production for 2025
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On March 4, China said it will keep controlling i in 2025. This is to fix the problem of too much steel and growing trade problems, according to Reuters.
A government report said China, the world’s biggest steel producer and user, will “push to fix the steel industry by cutting production.”
“We will make rules and plans to solve big problems in key industries and stop tough competition by improving the industry,” the report explained.
Chinese steelmakers are struggling to make money because the real estate market has been weak for a long time, lowering the need for steel at home. At the same time, trade tensions over China’s cheap steel are making it harder to export steel this year.
China’s strong steel exports, which helped balance the weak demand at home, are now facing pushback from more countries. Many say China’s cheap steel hurts their local producers.
Vietnam and South Korea, China’s two biggest steel export markets, along with other countries, started adding anti-dumping taxes on some Chinese steel products in February.
Beijing began limiting crude steel growth to 0% per year in 2021 to control carbon emissions.
As a result, China’s steel production dropped 5.6% to 1 billion tons last year, down from a record 1.065 billion tons in 2020, according to official data.
On March 4, China said it will keep controlling i in 2025. This is to fix the problem of too much steel and growing trade problems, according to Reuters.
A government report said China, the world’s biggest steel producer and user, will “push to fix the steel industry by cutting production.”
“We will make rules and plans to solve big problems in key industries and stop tough competition by improving the industry,” the report explained.
Chinese steelmakers are struggling to make money because the real estate market has been weak for a long time, lowering the need for steel at home. At the same time, trade tensions over China’s cheap steel are making it harder to export steel this year.
China’s strong steel exports, which helped balance the weak demand at home, are now facing pushback from more countries. Many say China’s cheap steel hurts their local producers.
Vietnam and South Korea, China’s two biggest steel export markets, along with other countries, started adding anti-dumping taxes on some Chinese steel products in February.
Beijing began limiting crude steel growth to 0% per year in 2021 to control carbon emissions.
As a result, China’s steel production dropped 5.6% to 1 billion tons last year, down from a record 1.065 billion tons in 2020, according to official data.
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