In the post on the association's official WeChat page, Chairman He Wenbo said it is necessary to pay close attention to recovering global steel production, adjust production and improve industry governance.

Government specifications on scale of production is "not a long term solution," said He.

"Market forces, the rule of law, and internationalisation are still the basic principles we must always abide by," added He.

China's daily crude steel output in September fell to the lowest since December 2018, according to Reuters calculations based on official data, as a power crunch in much of the country and environmental curbs slowed down industrial activity. Prices have also been highly volatile.

(Reporting by Steven Bian and Engen Tham in Shanghai; Editing by Kim Coghill)