China, the world's No. 1 steel maker and consumer, will limit its annual steel output to the maximum of 450 million tons during the next five years, sources with the China Iron and Steel Association said.

The move aims to tackle the overproduction of steel in the country, China Business Times said Thursday, quoting the association's plan for the 11th five-year (2006-2010) due to be released in January next year.

Currently, China's steel output capacity stands at 500 million tons, far exceeding the domestic demand.

Since April this year, prices on domestic steel products market have plunged, with the price of hot-rolled plates and rolls shrinking by over 40 percent in some places compared with its highest level in the year.

Source: Xinhua