China pledged to cut carbon emissions from and reduce steel capacity under a five-year plan while plant utilization rates should stay at a reasonable level. China’s Ministry of Industry and Information Technology announced that China’s steel capacity will decrease by 2025 and it would explore staggered production mechanisms for the steel sector. According to the MIIT, in 2021-25, China will continue to come under pressure from excess production capacity, and will need to deal with problems in guaranteeing resources and in the fields of green and low-carbon industrial concentration. China will implement a set of energy consumption standards for iron and steelmaking from January 1, 2022 to align them with the country’s decarbonization guidelines. Other targets in the five-year plan include:Cut energy intensity for steelmaking by 2%Steel mills that don’t meet ultra-low standards on air pollution could be closed or relocated, among other measuresStrictly curb coal consumption in steel sectorsImplement staggered production in steel industryMinistry of Industry and Information Technology said that China will support mergers and reorganizations of regional steel enterprises, aiming to change the situation of the excess number of small steel enterprises in regions. At the same time, China will guide hot rolled enterprises and coking plants to take part in the merger and reorganization of steelmakers in Beijing, Tianjin and in Hebei Province. China will encourage leading steel enterprises to undergo mergers and reorganization during the 2021-25 periods, aiming to create several world-class ultra-large steelmakers. Moreover, China will respectively foster the creation of just one or two leading enterprises in the stainless steel, special steel, seamless steel and cast tube industries.China will also strengthen the exploration of domestic iron ore and support the development of recycling metals to enhance its resource self-efficiency.