China's Baoshan Iron & Steel Co., Ltd. (Baosteel) has adjusted its production capacity target from 80-100 million tons to 80 million tons plus. The company said it is now focusing on realizing value from existing assets rather than simple scale expansion. Baosteel’s output was approximately 54.7 million tons last year.

The capacity reduction is occurring because China's steel demand is declining, driven by a sustained downturn in the real estate market and government measures to tackle excess industrial production. Official data showed that China's manufacturing activity expanded less than expected in October, worsening economic concerns.

Baosteel plans to continue a strict and strategic growth strategy, noting that there are few opportunities for high-quality domestic mergers and acquisitions. The long-term overseas goal is set at acquiring over 5 million tons of capacity, but only with careful timing and a focus on investment returns.