Market talk about China potentially reducing its annual crude steel production in 2025 by 50 million mt from 2024 have continued to push up iron ore and steel prices in the country.

However, it remains unclear whether the government will order steel output cuts or whether such a move would be strictly enforced, market participants said March 17.

From mid-March through April, China’s pig iron and crude steel production is expected to rise rapidly, they indicated.

The anticipated government-mandated steel output cuts may inadvertently fuel a ramp-up in steel production during the high demand season, according to some sources. This is to enable steel mills to mitigate potential output losses in the event that the government imposes mandatory cuts later on.