China Iron and Steel Industry Association holds a briefing on the policy for steel production capacity replacement
On June 11, the China Iron and Steel Industry Association (CISA) convened a policy briefing on steel production capacity replacement in Kunming, Yunnan Province. The meeting focused on interpreting and discussing the newly revised Measures for the Implementation of Production Capacity Replacement in the Iron and Steel Industry (MIIT Yuan 〔2026〕 No. 97, hereinafter referred to as the New Measures) issued by the Ministry of Industry and Information Technology (MIIT).
Wen Gang, Director of the Steel Division under the Raw Materials Industry Department of MIIT, delivered a speech and interpreted the New Measures. Xia Nong, Vice President of CISA, and Li Yan, Deputy Director of Yunnan Provincial Department of Industry and Information Technology, attended the meeting and delivered opening remarks. Wang Bin, Deputy Secretary-General of CISA and Director of its Planning & Development Department, presided over the session. Li Quangong, Senior Analyst (Level 1) of the Planning & Development Department and Director of the Steel Material Application Promotion Center of CISA; Chen Shanshan, Director of the Raw Materials Industry Division of Jiangsu Provincial Department of Industry and Information Technology; and Cai Shengjia, Assistant Director of the Low Carbon Center at the China Metallurgical Industry Planning and Research Institute, presented special reports respectively.
Xia Nong noted that this marks the third policy briefing on steel production capacity replacement organized by CISA, following the previous sessions in 2018 and 2021. The newly released New Measures have undergone extensive revisions and improvements on the basis of the original version, which reflects the timeliness and innovation of the policy while maintaining its continuity and stability. He called on the entire industry to strictly enforce policies concerning steel production capacity replacement and project filing, resolutely prohibit any new production capacity expansion, ensure full and faithful implementation of relevant policies, and consolidate the hard-won achievements of supply-side structural reform.
Based on recent research findings, Xia Nong highlighted two major issues widely raised by enterprises: excessive production capacity with sluggish capacity exit channels, and insufficient effective downstream demand, resulting in prominent supply-demand imbalances. To address these challenges, efforts should be made on both supply and demand sides. On the supply side, the industry shall further deepen supply-side structural reform by strictly curbing new capacity, optimizing existing capacity, promoting mergers and restructuring, and streamlining capacity exit mechanisms. On the demand side, priority shall be given to advancing the coordinated development of the steel structure construction industry to expand application scenarios for steel products.
Wen Gang stated that as the industry embarks on the development journey of the 15th Five-Year Plan period, the iron and steel sector should aim to consolidate and enhance its status and competitiveness in the global industrial division of labor. It is essential to accurately grasp the new situations and challenges facing the industry, thoroughly implement the strategic arrangements of the national 15th Five-Year Plan, and strive to drive quality improvement, efficiency enhancement and industrial upgrading of the steel sector, so as to underpin China’s new industrialization drive and the development of a modern industrial system with solid steel support. Combining practical cases, he also conducted a comprehensive clause-by-clause interpretation of the New Measures, clarifying its scope of application, replacement rules, regional management requirements, approval procedures, policy alignment and supervision regulations.
Li Yan remarked that in recent years, Yunnan Province has earnestly implemented national arrangements. Leveraging the production capacity replacement policy, the province has steadily promoted equipment upgrading and industrial structure optimization, enabling its steel industry to make solid progress toward high-quality development. Meanwhile, she acknowledged that Yunnan’s steel sector still has many shortcomings and gaps compared with advanced provincial counterparts. The province is confident of achieving high-quality development of its steel industry under the precise guidance of national policies and support from all parties.
During the special report session, Li Quangong introduced an overview of CISA, the development orientation and key work progress of the steel industry for the 15th Five-Year Plan. Chen Shanshan shared Jiangsu Province’s practices and experience in advancing high-quality development of its steel industry. Cai Shengjia interpreted policies of the national carbon market, analyzed existing problems of enterprises and put forward targeted solutions.
Hosted by CISA, the meeting was attended by over 400 representatives from the Raw Materials Industry Department of MIIT, local industrial authorities, industry associations, steel enterprises and research & consulting institutions.