From January to October, China's crude steel output totaled 818 million tons, down 3.9% year-on-year, with an average daily output of 2.6904 million tons.

As year-end approaches, social steel inventories have risen. According to a research report by Cinda Securities, inventories of five major steel products reached 10.073 million tons as of November 28, up 27.82% year-on-year. Latest data from the China Iron and Steel Association shows that while steel production has remained largely stable this year, apparent consumption has declined. Based on announcements from listed companies, some firms have increased the proportion of special steel production and sales, boosting their performance. Industry insiders indicate that the steel sector must accelerate technological innovation, enhance industrial competitiveness, actively expand the application scenarios of steel structure buildings, and proactively position itself in the new energy sector.

In terms of consumption, the latest data from CISA shows that in the first three quarters of 2025, China's apparent steel consumption was 649 million tons, a year-on-year decrease of 5.7%. Since the start of the 14th Five-Year Plan period, China's apparent steel consumption has shown a continuous decline, with overall steel production also trending downward. Domestic apparent consumption fell from its peak of 1.04 billion tons in 2020 to 890 million tons in 2024, a decrease of 150 million tons, representing an average annual decline of 3.8%.

Regarding the latest profitability in the steel sector, overall industry operations have been sound this year, with stable production and operations. Profitability has significantly improved compared to last year. However, domestic steel demand has declined, and inventories have increased. Although the industry turned from losses to profits in September compared to last year, the profit margin saw a substantial month-on-month decline from August, indicating that the industry's profit foundation remains fragile.

The latest mid-November 2025 steel production report from key enterprises released by the China Iron and Steel Association shows that during the mid-November 2025 period, key statistical steel enterprises produced 19.43 million tons of crude steel, averaging 1.943 million tons per day—a 0.9% increase from the previous day. Pig iron output reached 17.97 million tons, averaging 1.797 million tons per day, a 0.4% decrease from the previous day. and 19.24 million tons of steel products, averaging 1.924 million tons per day, a 2.1% increase from the previous day.

Previously, in October, both national and key steel enterprises saw year-on-year declines in crude steel output. In October 2025, national crude steel production totaled 72 million tons, down 12.1% year-on-year, with a daily output of 2.3226 million tons, a 5.2% decrease from the previous month. pig iron output reached 65.55 million tons, down 7.9% year-on-year, with a daily output of 2.1145 million tons, a 4% decrease month-on-month. From January to October 2025, cumulative national crude steel production totaled 818 million tons, down 3.9% year-on-year, with a cumulative daily output of 2.6904 million tons; pig iron production reached 711 million tons, down 1.8% year-on-year, with a cumulative daily output of 2.34 million tons; Steel product output reached 1.218 billion tons, up 4.7% year-on-year, with a cumulative daily output of 4.0052 million tons.

Regarding steel inventories at key enterprises, CISA data shows that by mid-November 2025, steel inventories at major statistical steel enterprises stood at 15.61 million tons. This represents an increase of 120,000 tons, or 0.8%, compared to the previous ten-day period; Up 3.24 million tons or 26.3% from the beginning of the year; Down 970,000 tons or 5.9% from the same period last month; Up 60,000 tons or 0.4% from the same period last year; Up 280,000 tons or 1.8% from the same period two years ago.

As of November 28, social inventories of five major steel products totaled 10.073 million tons, a year-on-year increase of 27.82%. As of November 28, factory inventories of the five major steel products totaled 3.935 million tons, up 2.11% year-on-year.

The China Iron and Steel Association (CISA) believes that steel enterprises must strictly implement crude steel production control policies, continue to resolutely adhere to the “three fixed, three avoid” operational principles, strengthen self-discipline, break internal competition, and jointly promote stable, orderly, sustainable, and healthy development of the industry. In the coming period, domestic steel consumption demand will generally show a slow downward trend. China's steel industry has transitioned from “incremental development” to a new phase of “optimizing existing capacity” and “enhancing quality and upgrading.”

Regarding the high-quality development of China's steel industry in the coming period: First, deepen supply-side structural reforms by focusing on controlling new capacity, optimizing existing capacity, promoting mergers and acquisitions, and ensuring smooth circulation. Second, enhance innovation capabilities and elevate the development level of the entire industrial chain by advancing toward high-end, intelligent, green, and integrated development. Third, accelerate iron ore resource development and strengthen scrap steel utilization to enhance resource supply capacity and safeguard industrial chain security. Fourth, prioritize the integrated development of the steel structure construction industry chain to expand the steel materials consumption market. Fifth, further elevate the internationalization level of the steel industry.

As an integrated internet platform providing benchmark prices, on December 3, the benchmark price of steel billets on SunSirs was 3070.00 RMB/ton, an increase of 0.99% compared with the beginning of the month (3040.00 RMB/ton).

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