On February 8, China's Ministry of Industry and Information Technology announced on its website that it will study and formulate a work plan to cut output this year, as well as implement the policy of controlling production capacity and output, to ensure that the country's crude steel output this year had a year-on-year fall this year.

From China's real estate, infrastructure, and manufacturing-related information, this year's steel consumption had a high probability to increase.

According to market participants, the reduction in crude steel production will lead to a sharp rise in steel prices. Therefore, it was rumored that the cancellation of the plate export tax rebate might be realized.

If the export tax rebate of 13% on hot-rolled coils is canceled, it will lead to a sharp rise in the export price of China's domestic hot-rolled coil and a sharp decline in the export price-performance ratio.