China's Ministry of Industry and Information Technology (MIIT) and four other government departments jointly released an action plan on Monday to stabilize steel industry growth in 2025-2026, including a 4% cap on annual value-added growth and commitments to eliminate obsolete capacity. 

China's steel industry, a key component of its economy, is experiencing reduced demand, increasing export challenges, and heightened competition due to abundant supply. The industry functions with thin profit margins and an unstable growth base, and increasing environmental regulations heighten the urgency for green transformation, resulting in significant investment and financial pressures. 

The action plan outlines ten specific measures across five aspects, prioritizing challenges of peak consumption and weakening demand. The plan aims to improve industry management, precisely control production, and implement hierarchical management to balance supply and demand and eliminate outdated capacity.