China continues to reinforce regulatory controls on its steel industry in 2025, focusing on long-term sustainability rather than short-term output cuts. The government’s strategy has shifted from restricting production volumes to guiding the sector toward higher-quality growth, energy efficiency, and reduced emissions. This aligns with China's broader economic goals of achieving carbon neutrality and curbing industrial overcapacity.
The China Iron and Steel Association (CISA) has emphasized that future development will rely on structural transformation. A new performance-based evaluation framework is in development to assess steel producers on metrics such as carbon emissions, energy consumption, and pollutant discharge. Companies that meet higher environmental standards are expected to receive stronger policy support, while outdated capacities may be phased out.
Unlike in 2021 and 2022—when steel output was directly curtailed—this year’s focus is on building a more balanced and green steel economy. While 2023 and 2024 saw stable production levels, 2025 marks a renewed regulatory push with stricter environmental metrics that could reshape the competitive landscape for Chinese steelmakers.
Vietnam Steel by Hoa Sen Group
