China's January-February steel output slides as falling margins, exports drag

SEATTLE (Scrap Monster): China's crude steel output in the first two months of 2026 slid 3.6% from the same period in the prior year, official data showed on Monday, curbed by falling steel margins and exports.

The world's largest steel producer manufactured 160.34 million metric tons of crude steel between January and February, the National Bureau of Statistics (NBS) said.

An average of 39% of Chinese steelmakers were operating at a profit in the first two months, a drastic fall from 21.6% over the same period the year before, according to Reuters calculations based on data from consultancy Mysteel.

China's crude steel output in January fell by 13.9% year-on-year to 75.3 million tons, the World Steel Association said last month.

China's steel exports in the first two months slipped by 8.1% from a year earlier to 15.59 million tons, as Beijing's export licence requirements slowed shipments.

China combines import data for January and February every year to smooth out the impact of the week-long Lunar New Year, which occurred in February this year.

Prices of China's new homes remained in contraction in February, official data showed on Monday, indicating the troubled property sector is still far from recovery despite tentative signs of improvement in the country's biggest cities.

The manufacturing sector leapfrogged the property market to become China's largest steel consumer in 2025.

Courtesy: www.tradingview.com