China has unveiled a two-year plan to stabilize its steel industry, setting an annual growth target of about 4 percent for 2025 and 2026, while pledging stricter limits on new capacity.

The work plan, jointly issued by the Ministry of Industry and Information Technology along with four other government agencies, said the steel sector should restore balance between supply and demand and avoid cutthroat competition.

Key measures include tighter controls on steel output, stricter classification and evaluation of steelmakers, and a ban on adding new capacity.

The plan also calls for the accelerated phaseout of outdated furnaces and converters. By the end of 2025, more than 80 percent of the country’s steelmaking capacity must complete ultra-low emission retrofits, according to the mandate.