In 2024, China's steel production decreased by 1.7% year-on-year to 1.005 billion tons, the lowest level in five years. Conversely, steel exports reached a record high of 110.72 million tons, up 22.7% from 2023. This contrast reflects the deep structural issues within the Chinese economy and significantly impacts the global steel market.
The decline in domestic steel consumption is driven by a slowdown in the construction and industrial sectors and strict debt control policies limiting new infrastructure projects. Rising energy costs and stricter environmental standards also contributed to the production decline. Despite this, China's steel exports increased due to attractive pricing amid weak global demand.
The shift in strategy by Chinese steel companies to focus on foreign markets indicates an adaptation to weak domestic demand, adding pressure to the global steel market. The key challenge for 2025 will be finding a balance between internal and external interests in the steel market. Experts predict a continuing upward trend in steel exports, with a focus on products with lower carbon emissions.
Stanislav Zinchenko, CEO of GMK Center, highlights that China's adaptation to the green agenda will further influence the global steel industry.
