An employee walks past rolled steel at a port during a government-organised media tour to Baoshan Iron & Steel Co., Ltd. (Baosteel), a subsidiary of China Baowu Steel Group, in Shanghai, China September 16, 2022.
The rise in production was driven by improved profit margins and strong export demand. Over the past two years, Chinese steelmakers faced challenges in maintaining profitability due to an oversupply and reduced domestic demand amid a gradual economic recovery. However, in March 2025, about 53% of steelmakers reported profits, a significant improvement from 25% in March 2024, as indicated by industry consultancy Mysteel.
Sustained demand from the manufacturing sector, combined with robust exports, has helped counterbalance the impact of ongoing difficulties in China’s property market. The manufacturing sector showed notable growth, with activity expanding at its fastest pace in a year during March 2025. These factors have supported the steel industry’s ability to ramp up production while navigating economic challenges.
For the first quarter of 2025, China’s total crude steel output grew by 0.6% year-on-year, reaching 259.33 million tons. This modest increase highlights the industry’s resilience and its critical role in meeting both domestic and international demand. The National Bureau of Statistics noted: “The steel sector’s performance reflects a balance of domestic manufacturing strength and export market opportunities, contributing to economic stability.”
The data underscores China’s position as the world’s leading steel producer, with its output driven by market dynamics and strategic production adjustments. Industry observers expect continued focus on optimizing production efficiency and meeting global demand, while addressing domestic economic conditions, to sustain growth in the steel sector throughout 2025.
