• A roadmap focusing on electric arc furnaces, energy efficiency, and emissions reduction
• Increasing scrap steel's contribution to production to 24% and industry concentration to 50%
• Strict oversight to prevent steel capacity increases, building dozens of model factories and digitalization workshops
The China Iron and Steel Association (CISA) has released the outline of the draft of its 15th Five-Year Plan for the steel industry during its Annual General Meeting, to be subsequently submitted as a reference document to the relevant ministries. This represents a shift from the previous plan, which was generally integrated within the industrial materials sector, according to the monthly report issued by the World Steel Association (World Steel).
By 2030, the plan aims to increase the industry concentration ratio (CR10) to 50%, a benchmark indicator used to measure the extent of control and dominance of major players or large companies over the total market or a specific industrial sector. It also aims to increase the share of electric arc furnace (EAF) steel to 20% and raise the contribution of steel scrap in production to 24%.
The plan also targets an R&D investment ratio of 3.0% of revenue, a 1.5% reduction in total energy consumption, an increase in labor productivity to 1,050 tons of steel per person annually, and a 15% share for crude steel processed in structural constructions.
The plan focuses on building a dynamic mechanism between supply and demand, facilitating the exit of inefficient production capacities by establishing a dedicated fund, and tightening strict oversight to prevent steel capacity increases or the trading of illegal production quotas. It also includes launching a new energy and carbon efficiency program, building dozens of model factories and digitalization workshops, and reviewing domestic iron ore reserves.
The World Steel report covered the most prominent company events and international conflicts, confirming that China Baowu Group strengthened its partnerships in August through three major agreements, including a strategic cooperation with SPDB for financing and industry integration, a supply chain coordination agreement between its subsidiary Zhongnan Steel and CEEC Group, and a strategic cooperation between Taiyuan Steel and the Linyi municipal government to develop the stainless steel and special steel industry.
The report highlighted the Jingye Steel crisis and the nationalization of British Steel, noting that the Chinese company issued its third statement to the international community strongly opposing the official nationalization of British Steel by the British government without fair compensation. The company considered this move an infringement on the sanctity of contracts and the integrity of the international legal system after significant investments made over five years to develop factories and support thousands of jobs.
Shougang Group published its 2025 Sustainability and Governance (ESG) report, recording revenues of 514.84 billion yuan and earnings before interest and taxes of 6.56 billion yuan. It achieved a 70.9% leap in green electricity procurement and adopted environmental footprint certifications for a wide range of its products, according to the report.
Meanwhile, the Chairman of Uzbekistan's Uzmetkombinat led a high-level delegation to visit three key Chinese partners: Sinosteel, Baogang Steel, and Sinorinko, to discuss expanded investment partnerships including the construction of new blast furnaces, the development of iron ore deposits, and the modernization of energy and logistics infrastructure.
Regarding steel market and production indicators, the World Steel report noted that apparent crude steel consumption in the first 7 months of 2026 decreased by 3.9% year-on-year, reaching 501.06 million tons, while crude steel production fell by 3.1% to 577.04 million tons.
As for foreign trade, including imports and exports, the report indicated a 8.2% decrease in semi-finished and finished products, totaling 3.71 million tons. In contrast, exports increased slightly by 2.2% to 77.11 million tons, achieving net exports representing 12.7% of China's total crude steel production.
The composite steel price index (a price index measuring the overall performance and price trends of an integrated range of basic steel products in the market at once) in China also declined in August by 0.66 points to 91.10 points, influenced by a decrease in rebar and hot-rolled coil indices, according to World Steel.
Regarding raw materials, the report indicated a decrease in the average import price of iron ore in July to $100.63 per ton, while the price of steel scrap in Eastern China stabilized at the end of August at $299.18 per ton. Iron ore inventories at ports remained stable at 173.75 million tons.
Concerning production capacities in August, new steel production capacities of 2.00 million tons per year and rolling capacities of 4.70 million tons per year were announced as operational, with no old capacity shutdowns recorded during the month.
The World Steel report also covered macroeconomic indicators and demand drivers, noting the confirmation by the Chinese National Bureau of Statistics that the economy is stabilizing on the right track, supported by emerging and digital service sectors.
Meanwhile, the real estate development sector continued its sharp decline, with investment falling by 19.2% and new project starts shrinking by 24.0% during the first seven months. In the infrastructure sector, investment in railways saw slight growth of 0.7%, while investment in the civil aviation sector surged significantly by 15.7%.
Regarding steel-consuming industrial sectors, the report confirmed that the Manufacturing Purchasing Managers' Index (PMI) showed a slight improvement, reaching 49.8 points in August. At the sector level, the value-added of the machinery sector increased by 5.3%, the shipbuilding sector saw a tremendous leap in deliveries of steel-made civilian vessels by 42.8%, and the production of household refrigerators rose by 12.1% during the first seven months of the year, according to World Steel.
• The World Steel Association (World Steel) is one of the largest and most influential international bodies representing the global steel industry. It includes major production companies, national and regional associations, and research institutes. It is responsible for publishing comprehensive statistics and data, monitoring market trends, and guiding sustainable development efforts and technological advancements in the global steel sector.
• The China Monthly Report is a periodic report issued by the World Steel Association to monitor and analyze the performance of the steel sector in the Chinese market. It is considered a key reference for decision-makers and analysts. The report regularly covers major government policy developments.
