China Iron and Steel Association (CISA) said the sector retains strong fundamentals in product quality, equipment, manufacturing capacity, environmental governance and green transition, but has moved from an incremental growth phase into a reduction-and-optimization phase. Since 2026 CISA said industry conditions have been defined by strong supply, weak demand, low prices and thin profitability; domestic steel demand continues to weaken and both social and corporate inventories sit at multi-year

China Iron and Steel Association (CISA) said the sector retains strong fundamentals in product quality, equipment, manufacturing capacity, environmental governance and green transition, but has moved from an incremental growth phase into a reduction-and-optimization phase. Since 2026 CISA said industry conditions have been defined by strong supply, weak demand, low prices and thin profitability; domestic steel demand continues to weaken and both social and corporate inventories sit at multi-year highs, driving prices down and compressing margins. CISA urged supply-side remedies: strictly enforce output controls, pursue self-discipline to curb production and reduce inventories, and fully deploy industry price-monitoring teams.