MNI BRIEF: China Sets 4% Steel Growth Goal, Bans New Capacity

China has set targets of around 4% annual value-added growth for the steel sector in 2025 and 2026, along with strict prohibitions on expanding production capacity, according to a two-year plan unveiled by the Ministry of Industry and Information Technology on Monday.

Policy tools will focus on capacity controls, differentiated management, and directing resources toward leading firms, while coordinating fiscal, taxation, and financial measures.

The plan, highlighting the importance of balancing supply and demand through output adjustments and industrial upgrades, aims to promote a rebound of economic benefits in the industry. Meanwhile, over 80% of steelmaking capacity must comply with ultra-low emissions standards by 2025. (See MNI: China Steel Demand Seen Weakening in H2)