China Iron and Steel Association Issues Self-Discipline Proposal to Curb Output and Cut Inventories

The China Iron and Steel Association issued the Proposal on Comprehensively Carrying Out Self-Disciplined Output Control and Inventory Reduction in the Steel Industry.

The proposal said that since the start of 2026 the steel industry has shown the characteristics of strong supply and weak demand, low prices and weak profits. Domestic steel demand has continued its weakening trend, social inventories and steel mill inventories stand at relatively high levels in recent years, steel prices have fluctuated downward, profits from the main steel business have fallen sharply, and enterprises face considerable pressure in production and operations. The proposal stated that the problem lies on the demand side, and that the fundamental way out of the difficulties lies in the steel supply side.

The proposal put forward three points. First, strictly implement output control, with the whole industry carrying out output control requirements to ensure the full-year target is met. Second, persist in self-disciplined output control and inventory reduction, with steel enterprises practicing the "three fixed and three not" operating principle, giving priority to efficiency, organizing production according to market demand, reducing high inventories, and promoting a dynamic balance between supply and demand. Third, give play to the role of the industry's price supervision team, with steel enterprises resisting behavior that grabs market share at prices below cost and regulating market conduct; leading enterprises should play a leading and demonstrative role, while small and medium-sized enterprises coordinate and act together to jointly maintain market stability and promote a good start for the steel industry in the 15th Five-Year Plan period.