To thoroughly implement the strategic decisions of the CPC Central Committee on promoting high-quality development and strengthening the Party’s innovative theoretical guidance, China’s steel industry is accelerating the implementation of the Three-Year Action Plan for Energy Conservation and Carbon Reduction Transformation in Key Industries, jointly issued by five government ministries and commissions, including the National Development and Reform Commission (NDRC). Guided by Xi Jinping Thought on Party Building, the industry is transforming the principle of comprehensive and strict Party governance into practical standards for institutional and rule-based governance, while advancing green and high-quality development.
Since June 2026, under strong policy support, the steel sector has entered a critical phase of capacity reduction and quality enhancement. The market has gradually formed a new pattern characterized by off-season fluctuations, controlled supply, and accelerated green transformation.
On June 15, 2026, the NDRC, the Ministry of Industry and Information Technology (MIIT), the Ministry of Ecology and Environment, and two other government agencies jointly issued the Notice on Launching a Three-Year Action for Energy Conservation and Carbon Reduction Transformation in Key Industries. The initiative identifies nine major industries, including steel, as priority sectors for comprehensive energy-saving and carbon-reduction upgrades over the next three years.
By the end of 2028, the proportion of steelmaking capacity meeting current energy-efficiency benchmark standards is expected to increase by an average of 20 percentage points. Capacity operating below benchmark levels will be largely eliminated, and production lines failing to complete upgrades within the specified timeframe will face mandatory closure in accordance with regulations.At the same time, the revised Implementation Measures for Capacity Replacement in the Steel Industry officially came into force nationwide. The new rules require a minimum replacement ratio of 1.5:1 for ironmaking and steelmaking capacity (1.25:1 for merger and restructuring projects). The policy strictly limits simple cross-enterprise capacity trading, effectively curbing speculative transactions in capacity quotas and promoting a shift from scale expansion toward higher-quality development.
As June progressed, demand for construction steel remained cautious due to the rainy season in southern China and high temperatures in northern regions. According to monitoring data from Mysteel and major industry institutions:
Rebar futures closed at approximately RMB 3,112 per tonne, while hot-rolled coil futures stood around RMB 3,327 per tonne.
Average rebar prices in major Chinese cities declined slightly by RMB 10–20 per tonne.
Blast furnace capacity utilization among 247 surveyed steel mills reached approximately 90.8%, with daily hot metal production averaging about 2.42 million tonnes.
Social inventories of the five major steel product categories totaled approximately 11.26 million tonnes, representing an increase of over 20% year-on-year, characterized by high market inventories and relatively low mill inventories.
Iron ore prices fluctuated downward to around RMB 738 per tonne, while the eighth round of coke price increases provided certain cost support to steel prices.Overall, the steel market is expected to maintain a narrow-range fluctuation pattern in the short term, with generally stable prices and moderate adjustments.
As of now, 299 steel enterprises nationwide have completed and publicly disclosed ultra-low emission transformation projects. Companies such as Min Guang Steel in Luoyuan and Quanzhou, Fujian Province, have been recognized as Grade-A enterprises for environmental performance, further strengthening the industry’s green and low-carbon foundation.
Leading steelmakers are also accelerating their transition toward high-end and intelligent manufacturing:
Baosteel successfully completed and commissioned upgrades to its cold-rolling pickling production line at the Baoshan base.
Chongqing Iron & Steel achieved mass production of offshore wind power steel products and obtained CE certification.
Daye Xinye Special Steel launched a RMB 2 billion intelligent continuous rolling pipe production line, marking a significant step for private special steel producers into the high-end precision pipe sector.
Industry experts believe that these developments align closely with the national objective of cultivating high-quality talent and promoting technological self-reliance. State-owned enterprises and leading private companies are increasingly transforming strategic policy guidance into concrete technological innovation and industrial upgrading.
Meanwhile, global steel trade protectionism continues to intensify. Statistics show that during the first half of 2026, 46 anti-dumping and countervailing investigations involving Chinese steel products were initiated worldwide, accounting for 76.67% of all trade remedy cases involving China. Products affected include galvanized cold-rolled steel, stainless steel welded pipes, and hot-rolled coils. Countries and regions such as South Korea, the European Union, and Canada have successively introduced provisional anti-dumping duties or launched sunset reviews.In response, the China Iron and Steel Association has called on the industry to avoid below-cost exports and maintain disciplined export pricing practices in order to address increasingly complex international trade challenges.
Market analysts believe that the continued implementation of the three-year energy conservation and carbon reduction campaign, together with stricter capacity replacement policies, will accelerate the elimination of inefficient production capacity and strengthen supply-side constraints.Looking ahead to the second half of the year, if pro-growth policies continue to gain momentum and large-scale equipment renewal and consumer goods replacement programs stimulate demand for scrap steel and manufacturing-related steel products, segments such as steel plates and specialty steel products may be among the first to experience profit recovery.
The industry is expected to continue adhering to the new development philosophy by transforming policy guidance into practical achievements and further promoting the high-end, intelligent, and green development of China’s steel industry.
Source: SteelNet (China Steel Industry Information Platform)
