CISA signaled stricter capacity controls at the 2026 Steel High-Quality Development Conference, emphasizing prohibitions on new capacity additions. China’s 2025 crude steel output fell 4.4% to 961 million metric tons, while domestic consumption dropped 7.1% to 829 million metric tons. The manufacturing sector overtook construction as primary steel demand driver, capturing 51% of consumption versus construction’s 49% share. Global overcapacity could reach 721 million metric tons by 2027.