China Iron and Steel Association: Establish a new mechanism for capacity management in the steel industry

Xia Nong stated that the steel industry is facing significant supply-demand imbalances, an unstable foundation for profitability, and pressure from the high intensity of green transformation investments. However, steel is an irreplaceable essential raw material for the development of the national economy, and the steel industry is a crucial support for building a modern and strong nation. He noted that, based on strictly implementing crude steel output control policies, it is important to actively research and establish new mechanisms for capacity management. It is necessary to strictly prohibit new capacity expansion, open channels for capacity exit, and, through the introduction of relevant policy measures, eliminate equipment that is technologically outdated, causes severe environmental pollution, or has low production efficiency, as well as establish and improve a sound, effective long-term mechanism to guide enterprises in strictly regulating themselves. Furthermore, efforts must focus on both supply and demand, and further expand the application of steel, which is a key way to tap into effective demand and ease existing contradictions.