China's Shandong Province in Eastern part has begun taking steps to ensure that the Shandong Province's crude steel output this in 2022 falls below 2021 volume in compliance with China’s policy of keeping China’s crude steel production under control. Shandong Province’s government has issued guidelines in this regard to steel mills across the province instructing them to ensure that total crude steel output in 2022 in Shandong Province should be lower than 76.5 million tonnes. Accordingly, local governments in various cities in Shandong Province have ordered various steel mills to divide local steel output guidance by the month and ensure the output will not exceed the monthly volumes of 2021. But information so far suggests that not all steelmakers in Shandong Province have been ordered to cut production.Shandong Province’s crude steel production in January-April 2022 has been reduced by 21.9% YoY to 22.95 million tonnes due to COVID-19 resurgence and stringent air pollution controls. Amid weak steel demand & thin margins local steelmakers seem to be on track to meet output control targets.This move is targeted at giving the steel sector more room for transforming into a low-carbon industry and also to tame market talks over steel output cuts that have caused price volatility and is in line with China’s plan for reaching steel industry to peak carbon emissions by 2030,.Shandong Province was China’s third largest steelmaking province in 2021 after Hebei Province & Jiangsu Province, with crude steel production 4.3% lower than 2020.