China will "decisively reduce" steel production capacity and provide a comparable decrease in its production in 2021, said the Minister of Industry and Informatization of the People's Republic of China Xiao Yaqing at a departmental workshop on Tuesday.
The official noted that efforts will be made in the country next year to promote low-carbon industrial development and green production.
China previously announced a commitment to peak carbon emissions by 2030 and carbon neutrality by 2060.
In recent years, China has taken serious steps to reduce overcapacity, especially in the energy-intensive steel sector.
During the 13th five-year plan (2016-2020), China fulfilled ahead of schedule the task of reducing steel production capacity by 150 million tons. Energy consumption per unit of production of the country's leading industrial enterprises has also significantly decreased.
The most traded iron ore futures on the Dalian Mercantile Exchange for May delivery after Xiao Yaqing's announcement fell 5.9% to 959 yuan (roughly $ 146.98) a tonne. As of 23.08 GMT, stock prices for ore in China fell 4.9%.