- Output remains range-bound in Jan-Mar’25
- Construction, manufacturing demand picks up
China’s crude steel production in March 2025 stood at 92.84 million tonnes (mnt), reflecting a 4.6% y-o-y rise compared to 88.27 mnt in March 2024, according to data from the National Bureau of Statistics (NBS). Moreover, production increased by 12% m-o-m from February 2025.
Crude steel production in January-March 2025 remained more less range-bound, inching up 0.6% y-o-y to 259.33 mnt against 256.23 mnt in the same period last year.
Factors affecting output
Improved domestic demand: China’s domestic steel demand picked up, especially from the manufacturing sector, which benefited from lower raw material costs. Additionally, favourable weather conditions led to improved construction activity, further fuelling demand and production growth.
Increase in steel exports: China’s steel exports rose 6% in March 2025 to 10.46 mnt against 9.88 mnt in March 2024. This increase in exports can be attributed to competitive pricing strategies to gain share in the international market. The predatory pricing made Chinese steel products more attractive to buyers overseas, boosting the country’s export volumes.
Outlook
China’s crude steel production is expected to remain strong in the short term, driven by domestic demand from the manufacturing and construction sectors and supported by lower raw material costs and favourable weather conditions. However, rising trade tensions could impact exports, making domestic demand increasingly crucial.
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