China to Cut Steel Production

China’s major steel producers plan to cut their production by 5 percent in the fourth quarter to support the commodity’s price.

The nation’s 48 steel makers came to that agreement at a conference organized by the China Iron and Steel Association, Xinhua reported Wednesday.

China’s iron and steel production exceed domestic demand against the backdrop of a tightening macro-control policy aimed at cooling the overheated economy, which grew 9.5 percent in the first quarter.

Steel prices in China saw dramatic rise and fall fluctuations this year.

The price soared to a record after China accepted a 71.5-percent price hike for iron ore in an agreement with international suppliers in February. It began to fall after the central government adopted a series of macro-control measures — including lowering the export rebate taxes for the steel industry from 13 percent to 11 percent starting May 1, and abolishing the export tax rebate policy for billet starting April 1.

There are more than 800 iron and steel firms in China.