China’s steel industry is strengthening efforts to improve profitability, operational efficiency, and production discipline through the establishment of a practical self-regulatory framework, according to industry authorities.
Zhao Min’ge, President of the China Iron and Steel Association (CISA), stated that the association will continue assisting government departments in refining capacity replacement policies, enhancing regulatory education, and improving performance evaluation mechanisms. These efforts aim to promote a more regulated and sustainable steel production system.
Focus on Quality, Sustainability, and Capacity Optimization
The steel sector is expected to further optimize its production control mechanisms, prioritizing product quality, safety, environmental compliance, energy efficiency, and carbon emission reduction. These measures are designed to encourage structural optimization and long-term stability across the industry.
Despite domestic improvements, export challenges are increasing. According to Fitch Ratings, steel producers across Asia are facing mounting pressure as global authorities implement stricter protectionist measures targeting steel imports.
China Strengthens Supervision of Steel Exports
To address export-related risks, China is enhancing regulatory oversight. In March, five government agencies — including the State Taxation Administration and the Ministry of Commerce — jointly issued a circular aimed at strengthening supervision of steel export transactions.
In response, CISA conducted on-site research to collect industry feedback and promptly communicated concerns to relevant authorities. The association will also upgrade its steel import and export monitoring system, reinforce structural trend analysis, and closely track developments in international steel trade.
These initiatives are expected to ensure the effective and standardized implementation of price commitments, helping stabilize export markets and protect the overall interests of China’s steel industry.
Rising Demand for High-End Steel Products
Greater emphasis is being placed on meeting the higher material standards required by emerging industries such as new energy, high-end equipment manufacturing, information technology, and biomedicine.
Huang Yixin, Chairman of Nanjing Iron and Steel Co, noted that the company is accelerating the development of high-end and specialty steel products through innovation and collaboration with research institutes. These products are increasingly used in solar energy, offshore wind power, and cross-sea infrastructure projects.
Steel Output Declines as Profitability Improves
According to the National Bureau of Statistics, China produced 515 million metric tons of crude steel in the first half of 2025, representing a 3% year-on-year decline. Apparent crude steel consumption totaled 452 million tons, down 5.6% compared to the same period last year.
Despite lower output, industry profitability has improved significantly. Fitch Ratings reported that China’s steel sector generated 46.3 billion yuan ($6.44 billion) in profits during the first six months of 2025 — already surpassing the entire profit level of 2024.
Outlook: Steel Exports to Remain Strong in 2025
Fitch expects China’s steel exports to remain relatively strong in the second half of 2025, despite rising protectionism. Steel export volumes increased 9% year-on-year in the first half of the year.
“Although Chinese steel exports face growing protectionist scrutiny and weaker domestic demand, profitability is expected to improve in 2025 due to lower costs and the government’s ‘anti-involution’ campaign, which aims to curb unhealthy competition and improve the domestic competitive environment,” Fitch said.
Source: China Daily
