Angang Steel, the world’s third-largest steelmaker, reported a staggering net loss of seven billion yuan ($969 million) in 2024, as China’s steel sector struggled with overcapacity and weak demand. The loss, disclosed in a stock exchange filing on Sunday, was significantly higher than the company’s 4.1 billion yuan deficit in the previous year.
China’s steel industry has been hit hard by a prolonged downturn in the domestic real estate sector, a key consumer of steel. Angang attributed its poor performance to “severe market conditions,” citing a “persistent lack of downstream demand” and a generally weak market cycle.
As the world’s top steel producer, China manufactured over a billion tonnes of steel in 2024. However, with domestic construction demand declining, steel exports surged to a nine-year high of 111 million tonnes, sparking global concerns over market saturation.
In response to the influx of Chinese steel, several countries have introduced protective measures. The United States announced a 25% tariff on all imported steel, including from China, effective March 12. Vietnam and South Korea, the largest buyers of Chinese steel, have also imposed levies.
To address the oversupply issue, China’s top economic planning body recently stated that it aims to cut steel production in 2025, though it did not specify the extent of the reduction.
