According to a report, China’s major steel industry group is asking for mail to restrain production after the government’s stimulus plan has resulted in the price rise of most alloys. It was the China Iron and Steel Association said in the statement after a meeting of 18 steelmakers. The rebound in prices doesn’t mean a change in the long-term situation of oversupply.

The steel industry faces the challenge of slow demand in a weak property market and decline after the decades-long infrastructure boom. The head of the largest steelmaker warned in August this year.

The Chinese government set up a plant to stimulate the economy in late September. It increased the prices of steel products as the steelmaking ingredient, including iron ore, by around 13%.

China’s steel production was about 1 billion tons every year for the last four years. Production has been seen dropping for the last few months compared to one year ago. The Association urges the steelmakers to bring supply and demand to balance. It seems the country’s production could drop to 800 million tons by 2035.