Market steel prices continue to fall, and 23 Chinese steel mills have recently been shut down for maintenance.

Market participants said that the production cut is the only way to solve the current plight of the steel industry and also to reduce sales pressure and inventories, and this solution can rebuild buyers' confidence.

As China mills cut capacity, global iron ore prices have fallen by nearly 20% in the past month. Meanwhile, the European Central Bank and the Federal Reserve will raise interest rates. Generally speaking, the price of iron ore will be weak continuously.

Therefore, the Chinese authority advised steel mills to abide by the guidelines, no production without orders, no sales below cost, and no delivery without payment.