China’s steel sector sees stable growth in H1, faces challenges ahead
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Update time : 2025-07-21 13:18:55
According to the China Iron and Steel Association, China’s steel industry maintained stable growth in the first half of 2025. Crude steel output declined by 1.7% and pig iron by 0.1% in the first five months. While the steel market slipped slightly, raw material costs fell further, boosting corporate profitability. Profits of association member companies rose by 18% year on year, with a 1.3% increase from the previous period.
Despite these gains, the second half of the year may bring greater challenges. The real estate sector has not yet bottomed out, export pressures are mounting, and overcapacity risks persist. The industry faces dual pressures from weakening demand and tightened carbon reduction requirements.
The Association emphasized the importance of electric arc furnace (EAF) steel in adapting to new development demands. China has over 300 EAFs with nearly 200 million tons of capacity, producing about 10% of the country's crude steel. Technological advancements have enhanced efficiency and quality, positioning EAF steel as vital to China's green transition.
