In April 2025, Chinese steelmakers reduced output by 7% compared to March, producing 86.02 million tons, according to data from the National Bureau of Statistics of China. While the monthly decline caught analysts off guard, production levels were roughly on par with April 2024. Daily output averaged 2.87 million tons, down from 2.99 million tons in March.
Despite the drop, profitability in the sector improved. Mysteel reports that 56% of Chinese steel companies operated at a profit in April, up three percentage points month-on-month, supported by strong domestic demand and robust exports.
Analysts suggest that recent years of losses, particularly due to the property crisis, have prompted mills to seek production increases—a trend expected to drive growth in May. From January to April 2025, total steel production reached 345.35 million tons, up 0.4% year-on-year, even as Beijing pushes to curtail output.
Authorities have yet to clarify how or when new production controls will be implemented. The China Iron and Steel Industry Association stated that enforcement measures will begin in the second half of the year, with local governments playing a key role. In 2024, steel production fell 1.7% year-on-year to 1.005 billion tons—the lowest in five years.
