AsianFin -- Baoshan Iron & Steel Co., China’s largest listed steelmaker, said it expects a nationwide reduction in steel output this year, as the industry faces mounting external pressures amid persistent overcapacity and weakening demand.

Baosteel, a key subsidiary of the state-owned China Baowu Steel Group — the world’s largest steel producer by output — flagged the likelihood of production cuts during its first-quarter earnings briefing on Monday.

“The chances of a cut are high, as it has been mentioned in the government report,” said Cai Yanbo, Baosteel’s deputy general manager, when asked about market speculation that China could slash crude steel production by 50 million metric tons this year.

However, Cai noted that any cuts would not be immediate. "We don’t expect measures to be implemented this month or next month," he said, adding that Baosteel has urged authorities to avoid a “one-size-fits-all” approach when managing output reductions.