China plans to cut steel output significantly

China has announced plans to restructure its steel industry by cutting crude steel output. This is the first time the National Development and Reform Commission has proposed such cuts, aiming to address structural issues in the sector. Previously, China faced criticism for flooding global markets with cheap steel, leading to tariffs from countries like the U.S. and India. In 2024, Chinese steel exports reached a nine-year high of 110 million tons, despite earlier efforts to reduce production. The impact of these new regulations on the iron ore market is uncertain. Analysts predict a potential drop in global iron ore demand by about 1% if steel production cuts reach 50 million tons. Iron ore prices have already begun to decline following the announcement.