CISA urges steelmakers to control output amid shrinking profits
Time:Thu, 25 Jun 2026 09:11:52 +0800
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Chinese steel producers face shrinking profit margins as raw material costs rise and demand weakens. In response, the China Iron and Steel Association (CISA) advised mills to base short-term production and maintenance schedules strictly on actual orders.
Domestic steel markets dropped throughout June 2026. Heavy southern rainfall and intense northern heat stalled construction projects, shrinking steel usage. Simultaneously, property consumption dragged down market demand, infrastructure growth slowed, and manufacturing investment entered negative territory. Export pressure also rose as the European Union prepared to cut tariff-free import quotas starting July 1.
Compounding these issues, tight coking coal supplies drove up fuel prices. Consequently, inventories piled up, leading CISA to recommend strict volume management to prevent severe supply gluts and further price collapses.
