China’s Iron and Steel Association (CISA) has suggested an industry self-guidance program to strengthen the iron and steel market in the country. The association recommended a two-pronged solution to promote high-quality development in China and altering export tactics to protect the domestic market.
CISA recommends the alignment of export schemes to support the country’s updated import and export policies. The new policies revolve around exporting high value-added finished steel and limiting the export of low-commodity grade products.
The association also asked members to plan production based on actual demand and supply dynamics and even export and not just focus on capacity utilization. It tasked larger players to take the lead in being regional stabilizers.
Additionally, CISA will establish monitoring systems to stay updated on critical market dynamics and issue early warnings as timely as possible. Through this approach, steelmakers will deepen the industrial chain cooperation to maintain market fairness and servicing customers.
CISA has cooperated with regulators and supports the new round of Chinese measures to curb record-high prices. The lower prices since the intervention in mid-May have eased cost pressures on downstream buyers including construction companies, which at the time threatened halting projects due to excessively high prices for raw materials like steel.