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China’s Steel Sector Is Softening, but With Resilience

China’s steel production peaked at 1.065 billion metric tonne in 2020.

Published

11 months ago

January 21, 2025

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There are two ways of looking at the 1.7% decline in China’s steel output last year.The first is that it confirms that the world’s largest producer of the key industrial metal is now in an established downtrend, and further weakness is likely this year.
The second is that the steel industry is actually remarkably resilient in the face of major economic challenges, and that output has been essentially flat at extremely strong levels for the past five years. Both are essentially factual, and reflect the classic glass half-full or half-empty dilemma.
On the half-empty side of the ledger is the fact that China’s steel production peaked at 1.065 billion metric tons in 2020, and has trended lower since then, with 2024 output coming in at 1.005 billion tons. But another way to look at China’s steel output is that it has been within a 70 million ton range between 2019 and 2024, which is actually quite a stable performance.
Perhaps the best way to characterise China’s steel production is that it likely has peaked, but the decline so far has been gentle, and output remains relatively high despite the well-publicised struggles of the world’s second-biggest economy since the COVID-19 pandemic.
Similar to other markets, the answer remains unclear and subject to factors yet to come into play, chief among them what trade tariffs are put in place by the new administration of U.S. President Donald Trump, who resumed the office . It’s also uncertain as to whether 2025 is the year China’s struggling residential property sector gets back on its feet, or whether it remains hostage to weak developer balance sheets and consumer wariness. A third factor is what will happen to China’s steel exports in 2025, after they hit a nine-year high of 110.72 million tons in 2024.
This was up 22.7%, or just over 20 million tons, from the previous year, with the increase helping to offset some loss of domestic consumption for steel mills. The volume of Chinese steel hitting global markets has led to some consternation among countries such as India, which is trying to boost the pace of expansion of its own steel sector.
This raises the possibility that China may find it harder to increase steel exports in 2025.But it is worth noting that not all importing countries are opposed to buying more steel from China, especially those without a domestic steel sector. The best-case scenario for China’s steel sector this year is one where trade tariffs aren’t too punitive, the domestic economy continues to regain momentum and construction activity stabilises, or perhaps even increases. Under such a scenario, the best outcome for China’s steel production would be steady output around 1 billion tons. This also means that China’s demand for iron ore is likely to remain steady as well, although it may ease from the record high of 1.24 billion tons in 2024.

Related Topics:China Steel steel production

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NMDC Steel Posts Record Output And Efficiency Gains In November

NSL reports its strongest monthly performance across operations

Published

1 day ago

December 12, 2025

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NMDC Steel Limited (NSL), India’s youngest integrated steel plant, closed November 2025 with record operational performance across its entire value chain, supported by stable processes, higher capacity utilisation and improved efficiencies.

The Raw Material Handling System reported its highest-ever daily wagon tippling of 616 on 21 November 2025, alongside a record monthly base mix output of 5,18,886 tonnes. The Sinter Plant delivered its best single-day production of 15,590 tonnes and a record 4,14,271 tonnes for the month, operating at more than 105 per cent of capacity.

The Blast Furnace achieved 11,315 tonnes of hot metal on 28 November—equivalent to 119 per cent of rated capacity—and produced 2,80,049 tonnes for the month, surpassing 101 per cent utilisation. NSL also recorded its lowest monthly average fuel rate of 519 kg per tonne and its highest pulverised coal injection (PCI) rate of 164 kg per tonne.

The Steel Melting Shop, Thin Slab Caster and Hot Strip Mill set new performance benchmarks, reporting monthly HR coil output of 2,03,356 tonnes, crude steel production of 2,09,445 tonnes and liquid steel output of 2,15,010 tonnes, with utilisation levels between 84 and 86 per cent. The plant also achieved its best-ever converter lining life of 4,799 heats and added two commercial grades—IS 2062 E450BR and IS 2062 E350C—to support construction and engineering applications.

Operational optimisation at the Oxygen Plant resulted in power cost savings of around Rs 19 million. The company also completed performance guarantee tests for the Blast Furnace and Turbo Blower packages and secured BIS certifications for IS 2041:2024 and IS 2062 E450BR.

CMD Amitava Mukherjee said the record performance reflects the team’s commitment and positions NSL to contribute strongly to India’s future steel growth.

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Krystal Wins Rs 90 Million Sanitation Contract from Jindal Steel

One-year mandate covers hygiene and upkeep across Jindal Nagar

Published

3 days ago

December 10, 2025

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Krystal Integrated Services Ltd, a leading provider of integrated facility management solutions, has secured a one-year sanitation services contract worth about Rs 90 million from Jindal Steel Limited. The agreement covers comprehensive cleaning and maintenance of plant sanitation facilities at Jindal Nagar in Odisha, aimed at enhancing hygiene and ensuring consistent upkeep across high-footfall areas.

The scope of work includes mechanised housekeeping such as sweeping and mopping, deep cleaning of walls and ceilings, maintenance of urinals, washbasins and shower zones, replenishment of consumables, drainage upkeep and overall cleanliness of toilet surroundings. Krystal will deploy trained personnel, specialised cleaning agents and sanitation equipment to ensure uniform service delivery.

Sanjay Dighe, CEO and Director of Krystal Integrated Services Ltd, said the mandate highlights the company’s commitment to supporting industrial hygiene and worker well-being. He noted that sanitation in large manufacturing environments requires discipline, reliability and process excellence.

The company will implement daily reporting, compliance monitoring and strict adherence to industrial safety standards, ensuring seamless coordination with plant administration. The contract strengthens Krystal’s growing presence in India’s industrial facility management space and underscores its capability to manage large operational mandates.

Founded in 2000 and headquartered in Mumbai, Krystal Integrated Services Ltd has grown into one of India’s leading integrated facility management companies, serving sectors including healthcare, education, government, transport and retail. Its operations and client base have expanded significantly in recent years.

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Aichi Steel to Expand Punjab Ties With Rs 5 Billion Investment

Japanese major plans deeper collaboration with Vardhman Steels.

Published

3 days ago

December 10, 2025

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Japanese steel major Aichi Steel has agreed to expand its partnership with Vardhman Special Steels in Punjab through a proposed investment of Rs 5 billion, Chief Minister Bhagwant Mann announced on Thursday. The development follows the signing of an MoU between the two companies during the CM’s visit to Aichi Steel on the third day of his Japan tour.

Calling it a “red-letter day” for Punjab, Mann said Aichi Steel Corporation — widely recognised as the steel arm of Toyota — has committed to strengthening its role in the state’s industrial growth. The company currently holds a 24.9 per cent stake in Vardhman Special Steels and serves as a key technology partner, signalling a deepening Indo-Japan industrial partnership in Punjab.

The Chief Minister said the Japanese firm will evaluate its future manufacturing operations in the state, including conducting a feasibility study for the proposed Rs 5-billion investment. Mann assured full government support to further the collaboration and emphasised Punjab’s commitment to helping existing Japanese investors scale their operations.

He added that advanced technical cooperation from Aichi Steel, combined with the Vardhman Group’s expertise, would usher in a new phase of industrial development in the state.

Mann also invited Aichi Steel’s leadership to attend the Progressive Punjab Investors’ Summit 2026, to be held from 13–15 March at the Indian School of Business, Mohali. He said the summit would showcase Punjab’s progress and offer fresh opportunities for collaboration, expressing optimism that Japanese participation would be strong.