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Try the Free AI Search EngineChina Steel Market Report: Activity Decline Amidst Slowing Consumption and Emission Concerns
In November 2025, emissions from China’s steel industry increased by 7.1% year-on-year, according to the article “Emissions in China’s steel industry increased by 7.1% y/y in November.” Concurrently, recent satellite data reveals significant changes in plant activity levels, particularly a 10.9% drop in overall production in November, aligning with a forecasted consumption decline of 5.4% in 2025, as discussed in “Rolled steel consumption in China will fall by 5.4% y/y in 2025 – forecast.”
Recent measurements highlight a notable decline in activity at Chinese steel plants, with the mean activity dropping sharply to 25.0% by the end of October 2025, reflecting significant operational reductions likely tied to forecasts of decreased steel consumption, especially in the construction sector. Ansteel reported a stable activity level of around 71-74% until a fall to 25%, revealing a stark drop likely prompted by broader market trends highlighted in the news. Jianglong’s activity peaked at 100% but tapered down to 59%, showcasing vulnerability to market shifts. Sansteel’s activity has remained around 48-50%, indicating a relatively more stable operation despite the overarching decline.
Ansteel Group Chaoyang Steel & Iron Co., Ltd., with a crude steel capacity of 2,100 kt, showed significant variability in activity alongside market sentiment. The drop aligns with the emissions increase reported and reflects broader industry pressures detailed in “Emissions in China’s steel industry increased by 7.1% y/y in November”. Jianglong, which focuses on energy and automotive sectors, may be particularly affected by the forecasted declines, with steel usage in construction projected to fall sharply. Sansteel Minguang Co., Ltd., which supplies construction steel among other products, also exhibits sensitivity to demand fluctuations relevant to the construction sector.
The tightening control over steel production as outlined in “China will maintain control over steel production and exports in 2026-2030“ signals potential future supply constraints, especially in light of tighter regulations emerging from specific plans to curb emissions. Procurement professionals should prepare for possible disruptions from specific plants, particularly those reliant on construction sector demand, and anticipate how upcoming regulatory measures may tighten supply chains.
Given these insights, steel buyers should adjust their procurement strategies to mitigate risks associated with potential supply disruptions from key producers experiencing operational volatility. Engaging in long-term contracts may offer price stability amidst shifting market conditions, particularly as consumer demand trends evolve and new regulatory frameworks emerge.