China’s January–July crude steel demand fell faster than output as mill margins neared break-even

Mysteel reported that China’s crude steel output and apparent consumption both contracted in the first seven months of the year. Export volume also declined year on year, although the average export price increased. Raw-material trends diverged: procurement costs for coking coal and coke rose significantly, while imported iron ore and scrap prices eased slightly. Over the same period, CISA member-company profits fell and margins approached break-even.

• January–July crude steel production: down year on year, according to Mysteel.
• January–July apparent crude steel consumption: down year on year.
• Steel exports: lower in volume but higher in average price year on year; no absolute figures were provided.
• Inputs: coking-coal and coke procurement costs rose significantly, while imported iron ore and scrap prices declined slightly.
• CISA member companies: profits decreased year on year and profit margins were close to break-even.

Monitor whether mills reduce production further to align supply with weaker apparent consumption, and whether higher export prices can persist without additional volume losses. Coking-coal and coke costs remain important margin risks, while further easing in iron ore or scrap could provide limited relief.