In the first quarter of 2024, China's steel production declined by 1.9% year-on-year to 256.55 million tons, according to data from the National Bureau of Statistics. The decrease was driven by lower-than-expected demand and rising inventories.
In March, steel production in the country fell by 7.8% year-on-year to 88.27 million tons. The average daily steel production last month was around 2.85 million tons, compared to 2.8 million tons in January-February and 3.09 million tons in March 2023.
Analysts expect steel production to grow in April as there are signs of improving demand for steel products. Some plants have resumed production after equipment maintenance, and the government's announcement to continue regulating steel production in 2024 has raised hopes for an improvement in the industry.
In the first quarter of 2024, Chinese steel companies increased exports of steel products by 30.7% compared to the same period in 2023, reaching 25.8 million tons, the highest level since 2016. Imports in the first quarter amounted to 1.75 million tons, down 8.6% year-on-year.
The ongoing contraction in the real estate sector and the slowdown in infrastructure construction have led to sluggish demand for steel, prompting the China Iron and Steel Association (CISA) to call on steel mills to reduce production intensity to balance supply and demand.
