China cut steel production to a 9-month low in August

Chinese steel companies reduced steel production by 0.7% in August 2025 compared to August 2024, to 77.37 million tons. Compared to the previous month, the figure fell by 2.9%. This is evidenced by data from the National Bureau of Statistics of the PRC, Reuters reports.

This is the third consecutive decline in monthly smelting volume, as a result of which steel production in January-August this year fell to 671.81 million tons (-2.8% y/y). Average daily output fell to 2.5 million tons from 2.57 million tons in July.

In August, steel mills in Tangshan, China’s main steelmaking center east of Beijing, were forced to limit production to ensure clean air during the military parade in the capital on September 3.

As a result, blast furnace output at the end of August fell to its lowest level in more than a month, according to Mysteel data. Some electric arc furnaces operating on scrap metal also cut production due to negative profitability.

“Last month, steel prices fell due to seasonally weak demand, while the cost of scrap metal remained virtually unchanged, leading to losses among EAF furnace producers,” said Xu Xianchun, a representative of Mysteel.

Rebar prices fell 4% in August. Demand remained weak, constrained throughout the month by the ongoing crisis in the construction sector, where new projects fell 19.5% over the year, while steel exports declined compared to July.

As GMK Center reported earlier, Chinese steel companies reduced steel production by 1.7% in 2024 compared to the previous year, producing 1.005 billion tons. This is the lowest figure in the last five years. Experts note that 2024 is likely to be the last year when steel production in China exceeded 1 billion tons.