The production capacity of crude steel will remain same or decrease until 2025

Recently, the Ministry of Industry and Information Technology issued the "Fourteenth Five-Year Plan for the Development of the Raw Material Industry". The development goals include that the production capacity of key raw material and bulk products such as crude steel and cement will remain same or decrease until 2025, while the capacity utilization rate will remain at a reasonable level.

The comprehensive energy consumption per ton of steel in the steel industry will be reduced by 2%, and the energy consumption per unit of clinker for cement products will be reduced by 3.7%.

Besides, the plan indicated that it is strictly forbidden to build new steel projects to expand smelting capacity. The leading companies were encouraged to implement mergers and reorganizations to create a number of world-class steel enterprises.

        According to the plan, the steel industry should continue to improve the quality of supply, expand the supply of high-end products,  promote the upgrading of product quality, establish and improve the product quality evaluation system, and accelerate the promotion and upgrading of steel products.