The Chinese government has announced another crackdown on rising steel and aluminum capacity.

The government said this week it would not approve any new steel projects designed simply to add raw steel capacity, and also would curb output of reinforcing bar and wire rod. It also vowed to end approval of new aluminum projects or capacity expansions for three years.

In a statement issued jointly by 10 government departments, Beijing said it would "resolutely" shut down blast furnaces smaller than 400 cubic meters and converters and electric furnaces less...