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Angang Steel, the world’s third-largest steel producer, reported in a stock exchange filing that it incurred a loss of nearly $1 billion last year, attributing the downturn to domestic overcapacity and sluggish demand in China.
The company highlighted that the Chinese steel industry has been grappling with challenges stemming from a persistent decline in the nation’s real estate sector, a key driver of steel consumption, which has weakened demand in the world’s second-largest economy.
According to its Hong Kong-listed unit, Angang recorded a net loss of seven billion yuan ($969 million) in 2024, a significant drop from the 4.1 billion yuan deficit posted the previous year. The firm pointed to “severe market conditions” as the primary reason for its underwhelming financial results, as detailed in the Sunday announcement.
Those included the “persistent lack of downstream demand in the steel industry, combined with a weak cycle and low market sentiment”.
Read also: Biden’s Objections Threaten US-Japan Steel Trade Deal
China is the world’s largest producer of steel, making more than a billion tonnes in 2024.
With demand slumping in the domestic construction sector, Chinese steel exports surged last year to a nine-year high of 111 million tonnes, spurring concerns abroad about overcapacity in foreign markets.
Back in February, President Donald Trump made waves by announcing that, come March 12, every steel shipment hitting U.S. shores—including those from China—would face a hefty 25 percent tariff.
Meanwhile, Vietnam and South Korea, the heavyweight buyers of China’s steel exports, signaled they’d roll out their own import taxes.
This month, China’s chief economic strategists revealed intentions to dial back steel production in 2025, though they kept mum on just how deep those cuts might run.
