China’s steel market demonstrated notable resilience in the first half of 2025, despite facing multiple internal and external challenges. While the steel market faced challenges, key demand drivers, manufacturing, fixed asset investment, and exports, maintained solid momentum, sustaining overall steel demand growth and supporting continued production expansion.

Manufacturing saw a 6.4% year-on-year rise in industrial added value, with equipment and high-tech manufacturing growing by 10.2% and 9.5%, respectively. Production of steel-intensive goods such as automobiles, industrial robots, and power generators surged, with yearly growth rates reaching 10.8%, 25.6%, and 60.5%.

Fixed asset investment rose 2.8%, with infrastructure and manufacturing investments up by 4.6% and 7.5%. Excluding real estate, growth reached 6.6%. Although property investment fell 11.2%, signs of stabilization emerged.

Steel exports climbed by 9.2% year on year to 58.15 million tons, helping offset weak domestic demand. However, oversupply and intensified competition resist. Looking ahead, policy support, easing trade tensions, and potential supply discipline may help stabilize or lift the market in the second half.