China, the world’s largest steel producer, reported a 1.5% year-on-year decline in crude steel production for the first two months of 2025. According to the National Bureau of Statistics, the country produced 166.3 million metric tons of crude steel during January and February, reflecting a slight decrease compared to the same period last year.
Despite the overall decline, the average daily production during this period reached approximately 2.82 million tons, a marginal increase from the 2.8 million tons recorded daily in the same timeframe last year. Analysts attribute this slight uptick in daily output to improved profit margins and increased export activity.
The reduction in steel production comes amid a backdrop of global trade uncertainties and evolving market dynamics. Experts suggest that some steel mills accelerated shipments to mitigate potential risks associated with international trade tensions. Notably, China’s steel exports rose by 6.7% in the first two months of the year, reflecting a proactive approach by producers to secure market share.
While the January-February figures show a modest decline, industry observers anticipate a rebound in March as mills ramp up production to capitalize on favorable market conditions. The steel sector’s performance remains a critical indicator of China’s industrial output and its broader economic trajectory.
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[1]China reduced steel production by 1.5% y/y in January-February https://gmk.center/en/news/china-reduced-steel-production-by-1-5-y-y-in-january-february/