China’s crude steel production [1] surged to a 10-month high in March, registering a 4.6% increase from the previous year, according to data from the National Bureau of Statistics (NBS). The world’s largest steel producer manufactured 92.84 million metric tons last month, the highest output since May 2024.
Analysts attribute the rise to improved profit margins and robust export demand, allowing steelmakers to scale up production. March’s daily output averaged 2.99 million tons, exceeding the levels seen earlier in the year. However, experts predict that production may stabilize or decline in April due to uncertainties in exports and domestic demand, exacerbated by rising trade tensions between Beijing and Washington.
Industry specialists note that while more than half of steelmakers were profitable in March—compared to just 25% a year ago, concerns remain about the long-term trajectory of steel consumption, particularly in the infrastructure sector.
Despite lingering economic challenges, China’s manufacturing sector expanded at its fastest pace in a year, reinforcing optimism among producers. For the first quarter of 2025, total crude steel output rose marginally by 0.6% year-on-year to 259.33 million tons.
Sources:
[1] China March crude steel output hits 10-month high on improved margins https://www.reuters.com/markets/commodities/china-march-crude-steel-output-jumps-decent-margins-rising-exports-2025-04-16/