China's steel giants request the government to announce restrictions on production

The recent decline in the price of steel products has led major Chinese producers to demand legal restrictions on steel production.

According to Reuters, the major manufacturers of long sections in China have asked the government to take serious measures to limit production. Recently, the prices of high-end products have dropped sharply, causing Chinese producers to suffer heavy losses.

China's real estate developers are burdened with huge debts, and the outlook for steel demand has deteriorated in the short term, and the increase in steel production and supply will further increase the losses of producers and require regulatory control by the Chinese government.

Rebar prices in the Shanghai Stock Exchange have decreased by 14.2% since the beginning of this year, and the production capacity in Shansi province has decreased by 38.4%.

China's rebar production in January and February 2024 decreased by 0.3 percent compared to the same period in the previous year, which had a volume equal to a decrease of 32.1 million tons.