Although China's steel production grows this year, it may probably start to decline in 2023. Considering that the government policy to replace low-efficiency mills with new-built larger mills has been removed, which could hopefully reduce the steel production of China in 2023-2026.

Meanwhile, in 2022 the steel demand in both domestic and international markets may turn weak, which means the steel price could actually be affected by any kind of production capacity expansion in the world.

It was known that some industry participants are asking for the government's interference in the restriction of steel production during the rest of 2022, which could possibly help relieve the excess of supply over demand in the market.