Meng Wei, deputy director of the Political Research Office of the national development and Reform Commission and spokesman, said on April 19 that in 2021, with the joint efforts of all relevant parties, China's crude steel output will decrease by nearly 30million tons year-on-year, and the task of reducing crude steel output will be fully completed. In order to maintain the continuity and stability of the policy and consolidate the results of crude steel output reduction, the national development and Reform Commission, the Ministry of industry and information technology, the Ministry of ecological environment and the National Bureau of statistics will continue to carry out the national crude steel output reduction in 2022, guide steel enterprises to abandon the extensive development mode of winning by quantity and promote the high-quality development of the steel industry.
It is estimated that the scale of reduction in crude steel output in 2022 will be roughly the same as that in 2021, but there will be obvious differences in the pace.
The announcement of this year's crude steel output target in advance will help the provinces and enterprises to issue indicators in advance and reasonably arrange the annual production tasks. As the output is lower than the production capacity, it will encourage steel enterprises to produce more when the profit is high and less when the profit is low, and the rhythm of supply and demand will be more matched. Therefore, it is expected that this year's steel market will be relatively mild.