China Plans Steel Output Cuts for 2025/26 to Curb Overcapacity

China will push to lower steel production between 2025 and 2026, according to an official document reviewed by Reuters. The world’s largest steelmaker pledged in March to restructure its giant industry, but withheld details on the scale and timing of reductions. Official data showed crude steel output fell 3.1% in the first seven months of this year from a year earlier to 594.47 million tonnes. The planned curbs align with Beijing’s goal of peaking carbon emissions by 2030 and tackling chronic overcapacity that has long pressured global markets. Past attempts at production discipline have often faltered as local governments prioritized growth. At the same time, slowing demand from China’s property sector has already curbed consumption, raising doubts on whether cuts reflect policy drive or weaker fundamentals. Still, tighter Chinese supply could lend support to global steel prices as India and Southeast Asia expand infrastructure-led demand.