China: Steel sector shifts to high-quality development amid market headwinds

China’s steel industry is accelerating its shift from volume-driven expansion toward higher-quality, more efficient growth, as changing demand and rising costs drive steelmakers to optimize capacity and product mixes and develop higher-value-added products to support sustainable development, industry insiders said.

The transition comes as the steel industry faces considerable market pressure. Data from the China Iron and Steel Association (CISA) showed that China’s crude steel output fell 2.9 percent year-on-year to 725 million metric tons in the first three quarters of 2026.

Meanwhile, apparent consumption of crude steel declined 3.8 percent to 625 million tons. Major steel enterprises tracked by the association posted combined profits of 71.8 billion yuan ($10.8 billion), down 27.4 percent year-on-year, according to the CISA.

Amid pressure to stabilize growth in the steel sector, five government departments — including the Ministry of Industry and Information Technology — jointly issued a work plan for promoting stable growth in the iron and steel sector (2025-26) in 2025.

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