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

Vice President Xia Nong of the China Iron and Steel Industry Association stated at the 2026 Steel High-Quality Development Conference on the 11th that a new mechanism for capacity management in the steel industry should be established. Xia Nong said that the steel industry is facing high pressure in terms of supply and demand contradictions, unstable profitability foundation, and the high intensity of green transformation. However, steel is an irreplaceable important basic raw material for the national economic development, and the steel industry is an indispensable important industry support for building a modern strong country. He expressed that, based on strict implementation of policies controlling crude steel production, active research should be conducted to establish a new mechanism for capacity management. It is necessary to strictly prohibit new capacity, open up channels for capacity withdrawal, eliminate outdated, environmentally polluting, and low-producing efficiency equipment through the adoption of relevant policy measures, establish a sound and effective long-term mechanism, and guide enterprises to strictly self-regulate. It is also important to adhere to supply and demand incentives, further expand the application space of steel, which is an important way to explore effective demand and alleviate contradictions.