China’s steel production fell to 76.93 million metric tonnes in July 2026, down 3.6% year-on-year and marking the weakest July output since 2017. During January-July, the world’s largest steel producer manufactured 577.04 million tonnes, a 3.1% decline from the same period last year.
The slowdown reflects sharply different demand trends across China’s economy. The struggling property and construction sector, which accounts for roughly one-third of domestic steel demand, continues to weigh on consumption amid weak housing prices and excess capacity.However, China’s automotive sector remains a bright spot. Vehicle exports surged 81.3% year-on-year in July to 1.043 million units, supporting demand from manufacturing. Meanwhile, Chinese steel exports declined 4% during the first seven months to 64.99 million tonnes.
Despite weaker steel output, iron ore imports rose 6% to 736.84 million tonnes in January-July, highlighting continued raw-material demand. The mixed trends suggest China’s steel market could remain under pressure unless construction activity improves or production capacity is further rationalised.
