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Beijing China's steel production fell by 1.5% year-on-year in the first two months of 2025, as weak domestic demand and tighter environmental regulations weighed on output. According to data from the National Bureau of Statistics, China's total crude steel production stood at 167.4 million tons during January and February, down from 169.9 million tons in the same period last year.
The production cut comes as China implements stricter pollution control measures and manages excess industrial capacity to stabilize prices. Industry experts attribute the decline to slowing construction activity and reduced infrastructure spending.
Steel output from major mills saw a notable dip, while smaller plants faced shutdowns due to energy consumption limits. However, analysts expect a slight rebound in production from the second quarter as construction and manufacturing demand pick up.
China remains the world’s largest steel producer, accounting for over 50% of global output. Despite the recent slowdown, the country’s steelmakers continue to benefit from stable export demand and improved supply chain efficiency.
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