The revised set of guidelines or standards, which stretches to 55 pages, is designed to lead the steel industry towards what Beijing describes as "high-quality development". The new regulations are expected to help phase out outdated or inefficient production capacity, accelerate the shift to low-carbon processes, promote the growth of short-process steel producers, and increase market consolidation in the steel industry, according to industry insiders.

In recent years China's steel sector has faced significant supply-demand contradictions which have put downward pressure on prices and threatened the viability of firms in what remains a crucial industry for China's economy, they explained. The need to eliminate inefficient capacity is especially pressing.

The new regulations are updated from the present version released in mid-May 2015 which itself was a revamp of the guide first released in 2010, Mysteel Global notes. The new standards for the sector are expected to restore supply-demand balance over the long run, the sources believed, while at the same time placing stronger emphasis on energy conservation and carbon reduction.

The updated standards, effective from January 24, 2025, have replaced the 2015 version. Steel enterprises recognized as 'normative' under the previous regulations (2013-2022) will maintain their status until December 31, 2025, but must submit new applications by the end of April to align with the updated criteria, Mysteel Global noted.

The most noteworthy difference between the MIIT's 2025 version and its 2015 predecessor is the introduction of a two-tier evaluation system for steel enterprises, dividing these into normative steel producers – those that meet the industry's basic requirements in terms of product quality and range, production efficiency and carbon footprint, for example – and those whose operations are of higher standard in terms of technology employed, the extent of product sophistication and the degree of environmental sustainability a firm's operations have achieved.

Though MIIT had earlier announced that 380 steel enterprises nationwide had met its normative requirements, as Mysteel Global reported, the sources point out that the 2025 guidelines – rather than being punitive and challenging companies to comply with its rules – are seen as serving more as a guiding framework, with companies able to voluntarily apply for recognition.

Specifically, the basic indicators serving as the criteria for evaluating "normative enterprises" cover six primary categories, namely basic requirements, process equipment, environmental protection, resource consumption, safety production, and quality management. However, another 20 secondary indicators are included.

For example, in terms of environmental protection, the 2025 edition requires steel enterprises to complete ultra-low emissions transformation across the entire production process by 2026. The guidelines also encourage companies to shut down or phase out equipment regarded as inefficient, heavily polluting or outmoded technically, such as sintering machines, coke ovens, and blast furnaces. Instead, the ministry intends for its guidelines to encourage companies to shift towards low-carbon ironmaking and electric-arc-furnace steelmaking technologies.

For "leading enterprises," the 2025 edition introduces additional evaluation criteria, focusing on high-end production, intelligent manufacturing, sustainability, efficiency, safety, and distinctiveness. Notably, seven new sub-indicators, specifically tailored for short-process steel producers, have been added to the guidelines.