Seasonal Demand: China's steel output and demand expected to rise in September

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Seasonal Demand: China's steel output and demand expected to rise in September

China 10 Sep 2025 06:05 PM IST Bloomberg

Seasonal demand, low inventories, and strong exports expected to drive market momentum

China’s steel production is projected to rise in September as seasonal demand from end-users begins to recover. In late August, several northern steel mills cut output in line with government directives, leading to a short-lived dip in production.

According to market participants, restocking demand is likely to support prices, though gains may be capped if mills ramp up production too quickly.

Steel inventories have remained below 2024 levels since February. By the end of August, stocks in major spot markets stood at about 23.81 million tons—up 5.2% from July but largely in line with last year.

With export demand holding strong and mills having secured sufficient orders, particularly for hot-rolled and cold-rolled coils, market pressure in September is expected to remain limited.

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