By Amy Lv and Lewis Jackson
BEIJING (Reuters) -China’s crude steel output in March climbed 4.6% from the prior year to the highest level in 10 months, driven by robust exports and favourable margins.
The world’s largest steel producer manufactured 92.84 million metric tons of crude steel last month, the highest for a single month since May 2024, data from the National Bureau of Statistics (NBS) showed on Wednesday.
The March volume, largely in line with analysts’ forecasts, suggested average daily output of about 2.99 million tons, versus 2.82 million tons over January-February and 2.85 million tons in March 2024, according to Reuters calculations based on the data.
Analysts said crude steel output in April is likely to flatten or fall from March, however, citing mounting uncertainties over exports and domestic demand amid the escalating trade tensions between Beijing and Washington.
“Steelmakers are largely maintaining their current operating rate, so we see limited scope for further increase in hot metal output this month,” said Pei Hao, a Shanghai-based senior analyst at international brokerage Freight Investor Services.
“Steel exports may slip in April due to the growing trade frictions. Also, we remain cautious about steel consumption in the infrastructure sector.”
Chinese steelmakers had been struggling to generate profit due to a supply glut and dwindling demand, amid a sputtering post-COVID economic recovery over the past two years. But they scaled up production last month as margins widened.
Around 53% of steelmakers were operating at a profit in March, compared with 25% in March 2024, data from consultancy Mysteel showed.
Resilient demand from the manufacturing sector, coupled with strong exports, has offset some of the economic fallout from China’s protracted property market woes.
China’s manufacturing activity expanded at the fastest pace in a year in March.
In the first quarter of 2025, China’s total crude steel output rose 0.6% year-on-year to 259.33 million tons.
(Reporting by Amy Lv and Lewis Jackson; Editing by Jamie Freed and Edmund Klamann)
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