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Global Steel Output Falls in August Amid China Production Slump

Steel News  |  2026-09-28 10:09:32

The weaker output in China, Asia and several other major producing regions offset gains in North America and Africa,

Global Steel Output Falls in August Amid China Production Slump
Summary
  • Global Steel Output Declines in August
    The 70 countries reporting to worldsteel produced 144.2 million tonnes of crude steel in August 2026, down 1.2% year-on-year. January-August production reached 1.225 billion tonnes, representing a 0.7% decline from the same period in 2025.
  • China’s Decline Weighs on Asian Production
    Asia and Oceania remained the largest producing region at 106.7 Mt, but output fell 1.4%. China’s production dropped 3.7% to 74.6 Mt, while India recorded a 4.6% increase to 14.8 Mt.
  • Vietnam Posts Strongest Growth Among Top Producers
    North American crude steel output increased 3.9%, while African production climbed 8.8%. Vietnam recorded the strongest growth among the top 10 producers, with August output surging 36.4% to 2.7 Mt and January-August production rising 29.1%.

MONTREAL (Scrap Monster): Global crude steel production declined in August 2026 as lower output in China and several major producing regions outweighed gains in India, the United States, North America and Africa, according to the latest data from the World Steel Association.

The 70 countries reporting to worldsteel produced 144.2 million tonnes (Mt) of crude steel during August, down 1.2% from the same month a year earlier.

Cumulative production during January-August reached 1.225 billion tonnes, down 0.7% compared with the corresponding eight-month period in 2025.

SCRAPMONSTER EDGE

China still accounted for roughly 52% of the crude steel produced by worldsteel's 70 reporting countries in August. Based on the reported year-over-year changes, China's production decline equates to roughly 2.9 million tonnes of lost output — more than the approximately 1.8 million-tonne net decline for the full 70-country group. In other words, production gains elsewhere offset a substantial portion of China's reduction.

Global Steel Production Falls 1.2% in August

worldsteel reported total August crude steel production of 144.2 Mt, compared with approximately 146 Mt during the same month last year.

The 70 countries included in the monthly dataset accounted for approximately 98% of total global crude steel production in 2025, making the figures a broad indicator of worldwide steelmaking activity.

RegionAug. 2026YoY ChangeJan-Aug. 2026
Asia & Oceania106.7 Mt▼ 1.4%906.4 Mt
North America9.4 Mt▲ 3.9%75.3 Mt
EU-278.9 Mt▼ 1.0%84.5 Mt
Africa2.1 Mt▲ 8.8%16.7 Mt
Middle East3.7 Mt▼ 4.6%33.3 Mt
Russia/CIS + Ukraine6.3 Mt▼ 5.6%52.0 Mt
South America3.4 Mt▼ 4.9%27.5 Mt
Europe, Other3.8 Mt▲ 1.2%29.5 Mt

China Steel Output Falls 3.7%

China remained by far the world's largest crude steel producer, turning out 74.6 Mt in August.

However, production declined 3.7% from August 2025, extending the country's year-to-date contraction.

China produced 651.9 Mt during January-August, down 3.1% from the corresponding period last year.

The decline in Chinese output was the largest factor behind the weaker global headline figure.

India Continues to Expand Steel Production

India produced 14.8 Mt of crude steel in August, up 4.6% year over year.

Production during the first eight months of 2026 reached 115.9 Mt, an increase of 6.0% from the same period in 2025.

The country remains the world's second-largest crude steel producer and one of the strongest sources of production growth among major steelmaking economies.

U.S. Steel Production Rises to 7.3 Mt

U.S. crude steel production was estimated at 7.3 Mt in August, up 3.0% year over year.

January-August U.S. production reached 57.5 Mt, up 5.5% from the same period in 2025.

The gain helped lift overall North American production to 9.4 Mt in August, 3.9% higher than a year earlier.

Vietnam Records Fastest Growth Among Top 10 Producers

Vietnam posted the strongest growth among the world's 10 largest steel-producing countries.

August production surged 36.4% to 2.7 Mt.

For January-August, Vietnam produced 20.6 Mt, up 29.1% from the same period last year.

The country's production growth substantially outpaced every other top-10 producer during the month.

Top 10 Steel-Producing Countries

CountryAug. OutputYoY ChangeJan-Aug.
China74.6 Mt▼ 3.7%651.9 Mt
India14.8 Mt▲ 4.6%115.9 Mt
United States*7.3 Mt▲ 3.0%57.5 Mt
Japan6.7 Mt▲ 0.4%54.0 Mt
Russia*5.5 Mt▼ 0.3%43.8 Mt
South Korea5.4 Mt▲ 2.6%42.8 Mt
Türkiye3.4 Mt▼ 0.4%26.6 Mt
Brazil2.7 Mt▼ 6.2%21.8 Mt
Vietnam2.7 Mt▲ 36.4%20.6 Mt
Germany2.6 Mt▲ 1.7%23.9 Mt

*U.S. and Russian August production figures are estimated by worldsteel. Top-10 ranking is based on year-to-date production.

Brazil and Middle East Output Weaken

Brazil recorded one of the sharpest declines among major steel producers, with output falling 6.2% to 2.7 Mt.

The Middle East produced 3.7 Mt, down 4.6%, while Russia and other CIS countries plus Ukraine recorded a combined 6.3 Mt, down 5.6%.

South American production declined 4.9% to 3.4 Mt.

Steel Demand Outlook Remains Uneven

The August production decline comes against a mixed global demand outlook.

In its April Short Range Outlook, worldsteel forecast global steel demand to increase modestly in 2026 to 1.724 billion tonnes, followed by stronger growth to 1.762 billion tonnes in 2027.

China's steel demand is expected to contract in 2026 as its property-sector adjustment continues, while India remains one of the strongest major demand markets. worldsteel forecasts Indian steel demand growth of 7.4% in 2026 and 9.2% in 2027.

Market Read

The August data points to a geographically uneven steel market rather than a broad global production contraction.

China remains the principal drag on the headline figure. Its 74.6 Mt of August production represented more than half of the total reported by worldsteel, meaning relatively small changes in Chinese output can materially influence global totals.

At the same time, production expanded in India, the United States, South Korea, Germany, Vietnam and across North America and Africa.

For steel mills, scrap suppliers and raw-material markets, the widening regional gap matters because steel production determines demand for metallic inputs including ferrous scrap, iron ore and direct-reduced iron. Continued production growth in India, North America and Vietnam could support regional raw-material requirements even while weaker Chinese output restrains the global headline.

SOURCES & METHODOLOGY

Production data are from the World Steel Association's September 24, 2026 crude steel production release. The 70 reporting countries represented approximately 98% of global crude steel production in 2025. Demand outlook figures are from worldsteel's April 2026 Short Range Outlook.

Frequently Asked Questions


  • How much crude steel did the reporting countries produce in August 2026?
  • The 70 countries reporting to the World Steel Association produced 144.2 million tonnes of crude steel in August 2026. This represented a 1.2% decline compared with August 2025.

  • How did global steel production perform during January-August 2026?
  • Cumulative crude steel production reached approximately 1.225 billion tonnes during the first eight months of 2026. This was 0.7% lower than production during the corresponding period of 2025.

  • How did China and India perform in August?
  • China’s crude steel output fell 3.7% year-on-year to 74.6 Mt, while India’s production increased 4.6% to 14.8 Mt. China’s year-to-date production was down 3.1%, whereas India continued to record stronger output growth.

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