FX.co ★ Beijing Targets Excess Steel Output in New Crackdown

China plans to "strictly" control any increase in steel production capacity, according to a report by state broadcaster CCTV on Monday. This initiative is part of a broader effort by the country to address its overcapacity issues, which have led to decreased prices and prompted protectionist measures from other nations. The Ministry of Industry and Information Technology, alongside other agencies, has laid out an objective to stabilize industrial growth through the years 2025 and 2026. The plan specifies a detailed regulation approach to manage production capacity and output, firmly restricting the expansion of new capacity. Steel manufacturers will be required to expedite the removal of outdated equipment, with a particular focus on old blast furnaces and converters. In an earlier report from August, Reuters noted that China had plans to reduce steel production over the next two years, drawing on internal documents and information from a well-placed source.