NTR - China tells steel industry to cut production adding to industrial export restrictions

Tuesday, China's National Development and Reform Commission "NDRC" released a statement detailing plans to reduce Chinese steel production in 2022. As the world's largest producer and exporter of steel, and with steel prices at ~3x historic averages, the production cut could contribute to inflation pressures outside of China. According to a statement released Tuesday by China's Iron and Steel Association, the industry should "maintain a balance between supply and demand under the limited market demand." Further adding, "under the dual constraints of resources and the environment, it is unwise to export low-end steel products on a large scale." China exported 67mt of steel in 2021; the Iron and Steel Association indicated Tuesday that output will decrease by 30mt in 2022.  China has evolved from a net importer of steel as recently as 2009, to become the world's largest producer. China accounts for over 50% of global production and exports of steel.

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China tells steel industry to cut production, adding to industrial export restrictions