Commodities
China Steelmakers Head for More Production Cuts as Demand Sags
- Output stayed above 1 billion tons in 2024 for fifth time
- Industry consolidation to accelerate as debt levels soar
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China is still producing too much steel, setting up the industry for more pain as domestic consumption drops and unprofitable mills reach a tipping point.
Output edged lower in 2024, although it stayed above 1 billion tons for a fifth consecutive year. Deeper cuts will be necessary to align with demand, which is faltering due to the protracted crisis in China’s property market and the changing nature of its economy.