According to statistics from the World Steel Association (worldsteel), global crude steel production across 70 countries totaled 150 million tons in July this year, a year-on-year decrease of 1.3%. Among them, China’s output dropped by 4% to 79.66 million tons, indicating that the nation’s efforts to curb steel output are taking effect.
The reduced supply is expected to support steel prices. China’s goal to cut 2025 crude steel output by 5% is a main part of its structural and carbon reduction policies. Furthermore, production halts in the Tangshan region to improve air quality ahead of Beijing’s military parade on September 3 have tightened the market and caused a short-term price increase.
Looking ahead, financial institutions such as Goldman Sachs foresee China’s steel production will continue to decrease in 2026 with a drop of 3%. This trend, combined with ongoing policies to close inefficient production lines, is seen as crucial for addressing global steel overcapacity.