Steel sector to push for higher-level supply, demand balance

China will step up efforts to address the "involution-style" competition in its steel sector by implementing strict controls on crude steel output, exploring new mechanisms for capacity governance and promoting coordinated efforts among the government, industry and enterprises, said Xia Nong, vice-president of the China Iron and Steel Association.

"It is essential to strictly prohibit new capacity additions, open up channels for capacity exit and phase out outdated equipment with backward technology, heavy pollution and low efficiency, and establish and improve a sound, science-based long-term mechanism to guide enterprises in strengthening self-discipline," Xia said.