China curbs new steel mills amid weak domestic demand

China has halted its approval process for new steel mills in the country, amid a sharp decline in domestic demand that has hurt profits and boosted exports, the Ministry of Industry and Information Technology said today.

For years, China has allowed companies to build new steel mills on condition that they reduce their old capacity, but a new program will replace them.

Calls have been growing for the Chinese government to take action to address the problems of falling steel prices, with demand down more than 10% since 2020. Many experts believe the industry needs to shrink to keep pace with economic changes that have made construction less reliant on steel.