Between January and March this year, China's output of pig iron, crude steel and finished steel totaled 210.98 million tons, 247.55 million tons and 351.44 million tons, down 2.9 percent, 4.6 percent and 1.7 percent year on year, respectively, according to China's National Bureau of Statistics (NBS). That means the rate of decline in steel production increased from 3.6 percent in the first two months to 4.6 percent in the first quarter, reflecting weaker-than-expected local market conditions in March, slower exports due to the new export licensing system, and some mills choosing to maintain lower production after the Chinese New Year holiday after seeing lower-than-expected profit margins.
Iron, crude steel production and finished steel were 73.28 million tons, 87.04 million tons and 130.98 million tons, down 3.3 percent, 6.3 percent and 2.3 percent year on year, respectively.
According to the government's 2026 work report, China will systematically reduce steel production capacity and promote supply-demand balance and structural optimization. However, the decline in steel production in the first three months of this year was mainly due to weak performance of the real estate sector, without any major mandatory production cut orders issued by the Chinese government
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