China reduced steel production by 3.3% y/y in January-August

In January-August 2024, Chinese steelmakers reduced steel production by 3.3% compared to the same period in 2023, to 691 million tonnes. This is evidenced by data from the China Steel Association (CISA).

In August, steel production in the country fell by 6.1% compared to July to 77.92 million tonnes, driven by lower demand and reduced margins for steelmakers. At the same time, this figure was down 10.4% year-on-year.

Average daily steel production by Chinese steelmakers in August was 2.51 million tonnes, down 6.1% from July and the lowest since the beginning of the year. This is due to a number of local steel mills shutting down for maintenance or cutting production amid declining demand and steel prices.

As a reminder, China produced 1.019 billion tonnes of steel in 2023, up 0.6% from 2022. The downward trend in the country’s steel industry has thus stopped after two consecutive years of declining production.

Last year, the Chinese government did not impose any restrictions on steel production in line with its ambitions to reduce CO2 emissions, which helped boost production and revenue for local steelmakers. This year, the Chinese government plans to continue to regulate steel production, but the extent and timing are not yet known.

China’s steel exports in 2023 increased by 36.2% y/y – to 90.3 million tonnes. Steel imports totalled 7.64 million tonnes, down 27.6% y/y. Ore imports increased by 6.6% y/y – to 1.179 billion tonnes over the year.