China intends to cut steel production between 2025 and 2026 to address chronic overcapacity that has depressed prices and prompted foreign trade barriers, according to an official planning document reviewed by Reuters. The world’s largest steel producer will tightly restrict new capacity, trim existing output and accelerate the start-up of selected domestic iron-ore projects to improve supply-demand balance. The draft, prepared by the industry and environment ministries, does not specify a numerical cap on output but calls for lifting the sector’s value-added by about 4% a year through technology upgrades and greater use of steel in infrastructure and housing. Crude steel production has already slipped 3.1% in the first seven months of 2025 after a 2024 contraction, underscoring the industry’s weak demand outlook. Beijing’s renewed push follows an earlier restructuring effort in 2023 that faltered amid mixed policy signals. Officials hope the new measures will stabilise profits for domestic mills and ease international tensions over excess Chinese steel, which has faced a wave of anti-dumping duties worldwide.