China's steel industry is stepping up efforts to establish a practical self-regulatory framework aimed at enhancing profitability and improving operational quality through a more regulated production mechanism.

Zhao Min'ge, president of the China Iron and Steel Association, said the CISA will continue to assist the authorities in refining implementation measures for capacity replacement, strengthened policy education and improved performance evaluation mechanisms while actively soliciting feedback from industry stakeholders.

"The sector is expected to further improve a production control mechanism that prioritizes quality, safety, environmental performance, and reductions in energy use and carbon emissions — all aimed at encouraging optimization of capacity structures," he said.

Zhao made the remarks at a recent council meeting of the CISA in Tangshan, Hebei province, noting that China's steel industry has responded actively to the country's call to curb nonstandard market practices despite complex external economic conditions.

Crude steel output regulation currently remains the most viable solution for adjusting production intensity and achieving supply-demand balance, he said.

According to Fitch Ratings, steel producers in Asia are set to face greater challenges in exporting their product as authorities around the world step up protectionist measures related to the sector.

The association is calling for industrywide adherence to the principle of setting clear targets for output, market positioning and price expectations, while avoiding disorderly competition and reckless capacity expansion.

The industry's export strategies are also being refined. The sector is expected to ensure that production control measures are effectively implemented.

In March, five government agencies, including the State Taxation Administration and the Ministry of Commerce, jointly issued a circular to enhance supervision of export transactions in the steel industry.

In response, the association conducted field research to gather firsthand insights and promptly conveyed concerns to relevant authorities.

In addition, the CISA will enhance its monitoring system for steel imports and exports, strengthen structural trend analysis, and closely track developments in international trade.

These efforts will ensure the effective and standardized implementation of existing price commitments, safeguarding the stability of export markets and the overall interests of the sector, Zhao said.

Greater attention is being paid to the higher material standards required by emerging sectors such as new energy, high-end equipment manufacturing, information technology and biomedicine to upgrade the industrial structure.

Huang Yixin, chairman of Nanjing Iron and Steel Co, said the company is advancing high-end steel product development through innovation in collaboration with research institutes, with its specialty products focusing on applications in areas such as solar, offshore wind and cross-sea infrastructure.

According to the National Bureau of Statistics, China produced 515 million metric tons of crude steel in the first six months of 2025, down 3 percent year-on-year. Apparent consumption of crude steel stood at 452 million tons, down 5.6 percent from a year earlier.

Fitch Ratings said the sector's profits of 46.3 billion yuan ($6.44 billion) in the first six months have already exceeded full-year profits in 2024.

It also said that China's steel exports are likely to remain elevated in the second half of 2025, despite rising protectionism, after increasing 9 percent year-on-year in volume terms in the first half of the year.

"Chinese steel exports are a particular focus of protectionism in other countries and face weaker demand at home, but we expect their profitability to improve in 2025 as costs fall and the government's 'anti-involution' campaign to curb unhealthy competition improves the domestic competitive landscape," it said in a report.

yinmingyue@chinadaily.com.cn