(HSV VIETNAM GROUP) – China's crude steel output in April 2025 remained stable over the same period last year at 86.02 million tons. This shows that steel mills are cautious in expanding output due to uncertainty about production cut policies.
Cumulatively from January to April 2025, China's crude steel output increased by 0.4% over the same period last year, reaching 345.35 million tons.
The overall profit of Chinese steel mills in 2025 is higher than the previous year. The profit of CISA member factories in the first quarter of this year was 21.6 billion yuan (2.995 billion USD), more than doubling over the same period last year. This prompted mills to ramp up production in March, with crude steel output increasing 4.6% year-on-year.
However, mills' enthusiasm for increasing output cooled in April, following market discussions about the possibility of a 50 million ton output cut. As expected by market participants, the Chinese government will require domestic mills to cut crude steel output to 954 million tons in 2025 (compared to 1.005 billion tons in 2024).
Although no official document detailing the production cuts has been announced, some steel mills are reported to have received notices. CISA Deputy Director Luo Tiejun said the production cuts were a market consensus but lacked unified action, which some saw as a sign China would enforce mandatory cuts for the rest of this year.
Overall, steel consumption in April remained weak, with investment in the real estate sector in January-April down 10% year-on-year.
Ha Diem HSV