Chinese steel output fell in July for a third straight month, hitting its lowest this year amid government efforts to control supply, ING’s commodity experts Ewa Manthey and Warren Patterson note.
Demand for steel in China remains subdued
“Steel production fell 4% year-on-year to less than 80 million tonnes as Beijing tries to control supply and halt excessive competition. Over the first seven months, output fell 3.1% year on year to its weakest level since 2020. Meanwhile, pollution control measures aimed at ensuring clear skies for next month’s military parade in Beijing are expected to exert downward pressure on steel production.”
“Demand for steel in China remains subdued amid persistent weakness in its property sector. Last week’s disappointing data showed China’s economy slowing across the board, with industrial activity, investment, and retail sales falling well short of expectations.”
“Mainland imports of unwrought Aluminium and Aluminium products rose 38.2% YoY to 360kt in July. Cumulative shipments increased 1.5% YoY to 2.33mt in the first seven months of 2025. Looking at exports, the country’s alumina exports jumped 56.4% YoY to 230kt in July. Shipments increased 64.3% YoY to 1.6mt in the first seven months of the year.”
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