In January–February 2026, China reduced its steel production by 3.6% y/y – to 160.3 million tons. This was reported by SteelOrbis, citing data from the National Bureau of Statistics of China (NBS).

Pig iron production fell by 2.7% year-on-year to 137.7 million tons, while rolled steel production dropped by 1.1% compared to the same period last year, reaching 221.2 million tons.

As Stephen Yu, a researcher at the consulting firm Mysteel, noted, according to Bloomberg, the first two months of the year are typically quieter for steelmakers due to the Lunar New Year celebrations and pollution control measures ahead of the annual legislative sessions in Beijing in early March.

In 2026, steel mills are less eager to build up inventories in preparation for a busier spring season due to concerns about the outlook.

As a reminder, China’s steel production fell below the 1 billion-ton mark in 2025, reaching its lowest level since 2018. According to data from the National Bureau of Statistics of China, the country produced 960.81 million tons of steel last year, a 4.4% decrease compared to 2024. The decline was a result of the protracted crisis in the real estate market, which significantly curtailed domestic demand for steel products.

As reported by GMK Center, China reduced steel exports by 8.1% year-on-year in January-February, to 15.59 million tons. Imports of steel products into the country over the first two months of this year fell by 21.7% year-on-year, to 827,000 tons.