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China's steel industry is moving towards high-quality development
Recently, China's steel industry has entered a critical stage of production cuts and green transformation. Domestic steel consumption has declined for four consecutive years, dropping from a peak of 1.04 billion tons in 2020 to 890 million tons in 2024, with an average annual decline of 3.8%. It is estimated that the consumption in the first three quarters of 2025 will be 649 million tons, a year-on-year decrease of 5.7%, and the consumption for the whole year will further decline.
In terms of business models, small and medium-sized steel enterprises actively pursue low cost, high quality and high efficiency. Large enterprises have proactively adjusted their production capacity, effectively maintaining a balance between supply and demand.
However, the steel industry still faces challenges. This year, sales during the traditional peak season fell short of expectations, and infrastructure investment declined by 4.6%, resulting in an 8.2% month-on-month increase in inventories at major steel mills in early October.
The green and low-carbon transformation of the steel industry has achieved remarkable results. By the end of October, it was estimated that 219 steel mills in China had completed ultra-low emission upgrades, involving a crude steel production capacity of approximately 188 million tons. Green and low-carbon development has become the core of the transformation of the steel industry and the inevitable path to achieving high-quality development.
In terms of business models, small and medium-sized steel enterprises actively pursue low cost, high quality and high efficiency. Large enterprises have proactively adjusted their production capacity, effectively maintaining a balance between supply and demand.
However, the steel industry still faces challenges. This year, sales during the traditional peak season fell short of expectations, and infrastructure investment declined by 4.6%, resulting in an 8.2% month-on-month increase in inventories at major steel mills in early October.
The green and low-carbon transformation of the steel industry has achieved remarkable results. By the end of October, it was estimated that 219 steel mills in China had completed ultra-low emission upgrades, involving a crude steel production capacity of approximately 188 million tons. Green and low-carbon development has become the core of the transformation of the steel industry and the inevitable path to achieving high-quality development.
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