This year, the steel output in Shandong Province of China, the third-largest steel production province in China, will be limited to an equal quantity of 2021. Other regions in China would follow the implements. The strategy was expected to reverse the current situation of supply exceeding demand.

The Covid-19 back again and the bad performance of the real estate industry resulted in negative effects on the industry and retail industry as well.

China’s steel output in 2022 will be lower than in 2021. Although the production reduction will be huge for the rest of time this year, it will not make the steel price rebound greatly. However, the strict policy to limit steel production was expected to support steel prices.