China to Mandate Steel Output Cuts to Ease Glut, Restore Profits

China will push the country’s steel industry to cut output, in an attempt to ease a massive glut and restore profitability at mills.

Authorities will promote industry restructuring to reduce production, the nation’s economic planning agency said at the National People’s Congress in Beijing on Wednesday. There were no specifics given on the volume of cuts in the sector, one of the worst-affected by the property market downturn. The market had speculated that as much as 50 million tons of output a year could be chopped.