China's steel industry saw significant growth in the first five months of 2025, driven by both policy dividends and market resilience

Economic data from the first five months indicate that China's steel industry has continued its recovery trend from 2024, achieving significant growth. This accomplishment is hard-won, especially against the backdrop of sluggish global economic recovery and intensified trade frictions. China's steel industry has demonstrated strong market resilience and effective structural adjustments.

Policy dividends continue to be released, supporting industry growth

According to data released by the State Taxation Administration, the main policies supporting technological innovation and the development of the manufacturing industry, including tax cuts, fee reductions, and tax rebates, amounted to RMB 636.1 billion in the first five months of this year. Among them, the steel industry, as a key beneficiary sector, received considerable policy support. From the supply side, the steel industry is accelerating its transition towards green and low-carbon development. The data mentioned that while the country's maximum power load reached a record high, the first batch of units of the Three Gorges Jiangsu Dafeng offshore wind power project was connected to the grid, reflecting the acceleration of new energy infrastructure construction. This is both a challenge for the steel industry - facing higher energy consumption standards - and an opportunity - creating new demand for high-end steel products.

Market resilience is tested in challenges

The steel industry, a traditionally high-risk area for international trade frictions, faces the challenge of the full implementation of the EU's carbon border adjustment mechanism in 2025. However, data from the first five months indicate that China's steel enterprises have effectively offset some of the impacts of trade barriers through diversified market layouts and enhancing product added value. Domestic market demand has maintained steady growth, especially in the two major areas of infrastructure investment and manufacturing upgrading, which have created rigid demand for steel.

The achievements of high-quality development are gradually emerging

The growth in 2025 differs from the previous model of solely pursuing scale expansion, exhibiting characteristics of "stable quantity and improved quality". Technological innovation has become the core driving force for growth. As 2025 is already half over, the steel industry has delivered a gratifying performance report, but the challenges it faces cannot be ignored. The steel industry needs to enhance flexibility while maintaining strategic focus, seek a better balance between stable growth and structural adjustment, and lay a solid foundation for achieving the annual development goals.