CISA calls on steelmakers to limit production and reduce inventories

In a statement issued on September 15, 2026, CISA called on steelmakers across China to control production and reduce high inventory levels.

The statement, jointly issued by 44 steel companies including China Baowu Steel Group, Ansteel Group and Shougang Group, called on producers to adhere to their annual production targets and take a coordinated stance against companies producing above the specified levels.

CISA stated that the Chinese steel industry is facing strong supply, weak demand, low prices and declining profitability in 2026. The decline in domestic steel demand and high producer and market inventories, which are at elevated levels compared with recent years, have led to lower steel prices and significant decreases in companies’ core operating profits.

Production to be adjusted according to demand

The association called on steelmakers to set production plans according to market demand, reduce inventories as quickly as possible and contribute to restoring the balance between supply and demand.

The statement emphasized that companies should prioritize profitability and take overall industry conditions into account when making production and sales decisions.

CISA also called on steel companies to avoid selling at prices below cost in an effort to gain market share. Large producers were urged to take a leading role, while small and medium sized companies were called on to align their operations with production controls.