The China Iron and Steel Association (CISA) has reported that the country's steel industry is accelerating the optimization of its product mix in response to ongoing market challenges. This initiative aligns with the national industrial structure adjustments.

In the first half of 2024, steel production primarily used in construction, bridge, and machine building saw a decline compared to the previous year, while output for the automotive and shipbuilding sectors continued to rise. CISA Chairman Yao Lin highlighted that the steel sector is grappling with issues such as supply-demand imbalances, falling steel prices, high raw material costs, and low economic efficiency.

Yao noted that the manufacturing industry will be a key driver for the steel sector's recovery, with the rapid growth of new energy vehicles and increased orders for new energy ships expected to bolster steel demand. Additionally, significant equipment upgrades in the industry present further opportunities for growth.

A recent survey by the National Development and Reform Commission (NDRC) indicated a cautiously optimistic outlook for the Chinese steel market in August, with expectations for sales and purchase prices rising. The survey showed an increase in the expected sales volume index to 61.1%, while the expected inventory index decreased to 44.7%.

The NDRC anticipates that a reduction in supply from steelmakers will help balance supply and demand dynamics, potentially leading to a slight increase in domestic steel prices. Overall, the steel industry's macroeconomic indicators have shown a downward trend in the first half of the year, reflecting the challenges faced by steelmakers.