China reduced steel output by 3.9% y/y in January–May

In January–May, Chinese steelmakers reduced steel production by 3.9% year-on-year – to 415.5 million tonnes. Rolled steel output for the same period fell by 1.5% year-on-year to 593 million tonnes. This was reported by SteelOrbis, citing China’s National Bureau of Statistics (NBS).

In the first five months, pig iron production totalled 354.7 million tonnes, down 3.1% year-on-year.

Despite the overall decline, the rate of decline in steel production over the first five months slowed by 0.2 percentage points compared with the January–April figures. Industry experts attribute this trend to supply-side structural reforms, as well as the high level of self-discipline among Chinese steel companies in controlling production volumes.

Specifically, in May, production volumes were as follows: pig iron – 73 million tonnes (-2.6% y/y), steel – 84.4 million tonnes (-2.7% y/y), rolled steel – 123 million tonnes (-2.8% y/y). However, compared with the previous month (April), a solid month-on-month increase was recorded. Pig iron output rose by 3.2%, steel by 0.9%, and rolled steel by 0.3%. The 0.9% increase in steel production compared to April reflects the traditional onset of the peak consumption season and increased construction activity during the month of May.

As reported by GMK Center, steel production in China fell below the 1 billion tonne mark in 2025, reaching its lowest level since 2018. According to data from the National Bureau of Statistics of China, the country produced 960.8 million tonnes of steel last year, 4.4% less than in 2024. The decline was a consequence of the protracted crisis in the property market, which significantly curtailed domestic demand for steel products.