China’s Steel Production Hits 10-Month High in March

China’s steel industry posted strong output figures in March 2025, reaching the highest monthly production in 10 months. According to the National Bureau of Statistics of China (NBS), the country produced 92.84 million tons of steel, marking a 4.6% year-on-year increase compared to March 2024.

This uptick reflects steady exports, improved profitability among steelmakers, and strong performance from China’s industrial sector.

Profitability and Industrial Demand Support Growth

In March, China’s steelmakers boosted average daily output to 2.99 million tons, up from 2.82 million tons in January–February. Last March, production averaged 2.85 million tons per day.

The growth was fueled by improved profit margins. Roughly 53% of steel companies turned a profit in March, compared to just 25% a year earlier. This turnaround came despite challenges in China’s real estate market. Strong industrial performance and sustained foreign orders helped mitigate domestic concerns.

Caution Ahead: April Production May Dip

Despite March’s strong numbers, analysts warn of possible production slowdown in April. According to Pei Hao, senior analyst at Freight Investor Services, most steelmakers are keeping production stable with limited capacity for additional growth.

Trade risks also pose a threat. Rising tensions between China and the United States may result in tighter steel export restrictions. Domestic demand, particularly from the infrastructure sector, also faces uncertainty, according to analysts.

In Q1 2025, China produced 259.33 million tons of steel—up 0.6% from Q1 2024.

Structural Changes Ahead for China’s Steel Industry

While March saw robust figures, the long-term outlook is shifting. In 2024, China’s total annual steel output dropped 1.7% to 1.005 billion tons—its lowest level in five years.

Industry experts now believe 2024 may have been the last year China will produce over 1 billion tons of steel. In March, the government outlined plans to restructure the industry by cutting output to reduce emissions and overcapacity.

As global steel markets react to Chinese policies and geopolitical pressures, industry observers—including SuperMetalPrice—will closely monitor how April unfolds.