China's key steel hub policy set to lead to long-term decline in steel output

"Iron ore prices could be pressured this year on lower output of China's crude steel and rising supply of overseas mines," said Zhu.

World crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 155.0 million tonnes (Mt) in January 2022, a 6.1% decrease compared to January 2021.

SASAC said that in January, the output of raw coal, sales of refined oil products and the production and sales of steel products of central enterprises have all maintained steady growth. Trade volume has also delivered rapid growth.

In addition, the downward real estate investment will drive down the output of traditional industries such as steel, nonferrous metals and cement.

The two provinces will also reinforce cooperation in the fields of manufacturing and energy to take advantage of renewable energy resources in the country.

China's economic growth will recover to over 5 percent in 2022 despite headwinds, as the government has pledged front-loaded policy support to shore up growth, experts said on Wednesday.

As the pillar industry of Inner Mongolia, coal is widely said to have made important contributions to its economic and social development.