Asia Leads Global Steel Production Growth in March
Global crude steel production showed signs of recovery inMarch 2025, increasing by 2.9% compared to the same month last year, accordingto the latest figures released by the World Steel Association. The 69 reportingcountries produced a combined 166.1 million tonnes of crude steel during themonth, with Asian manufacturers leading the growth.
Regional Production Shows Divergent Trends
Asia and Oceania remained the dominant steel-producingregion, accounting for approximately 74% of global output with 123.6 Mtproduced in March, up 3.9% year-on-year. This growth was primarily driven byChina and India, the world's two largest steel producers.
South America recorded the highest regional growth rate at6.5%, producing 3.7 Mt in March 2025. Africa (1.9 Mt, +0.6%), the Middle East(5.3 Mt, +1.9%), and North America (9.2 Mt, +1.4%) all posted modest growth.
In contrast, European steel production continued to facechallenges. The European Union (EU27) barely maintained production levels witha marginal increase of 0.2% to 11.7 Mt, while other European countries sawproduction fall by 7.2% to 3.6 Mt. Russia and other CIS countries, includingUkraine, experienced a 3.5% decline, producing 7.1 Mt in March.
Top 10 Steel-Producing Nations: Detailed Analysis
1. China (92.8 Mt,+4.6%)
China strengthened its position as the world's dominantsteel producer, accounting for nearly 56% of global output among reportingcountries. The 4.6% year-on-year increase to 92.8 Mt in March represents asignificant acceleration compared to its more modest quarterly growth rate of0.6%. This surge comes despite ongoing government efforts to control capacityand reduce environmental impact, suggesting robust domestic demand likelydriven by infrastructure stimulus and a potential recovery in the property sector.Chinese steel production has shown resilience despite international pressureregarding overcapacity concerns and potential carbon border adjustments fromtrading partners.
2. India (13.8 Mt, +7.0%)
India continued its impressive growth trajectory with a7.0% increase to 13.8 Mt, reinforcing its position as the world'ssecond-largest steel producer. This growth exceeds even its strong quarterlyperformance (+6.8%), indicating accelerating momentum. India's steel sectorbenefits from robust infrastructure development, expanding manufacturing, andsupportive government policies including the "Make in India"initiative and National Infrastructure Pipeline. With substantial capacityexpansion plans underway and domestic consumption growing, India remains ontrack to reach its ambitious target of 300 Mt annual capacity by 2030.
3. Japan (7.2 Mt, +0.2%)
Japan's production remained essentially flat with amarginal 0.2% increase to 7.2 Mt in March, outperforming its quarterly trend(-4.9%). This stabilization follows several challenging years for Japanesesteelmakers, who have been contending with high energy costs, competition fromlower-cost producers, and sluggish domestic demand. Major producers like NipponSteel and JFE Holdings have been implementing restructuring measures, includingblast furnace closures and operational consolidation. The slight improvement inMarch may indicate that these efficiency measures are beginning to yieldresults, though structural challenges remain.
4. United States (6.7 Mt, -1.5%)
The United States experienced a 1.5% decline in productionto 6.7 Mt, slightly underperforming its quarterly trend (-0.6%). This downturncomes despite protective trade measures remaining in place and reflects ongoingchallenges in key steel-consuming sectors, particularly automotivemanufacturing, which has faced supply chain disruptions and shifting consumerpreferences. U.S. steel producers have been investing in modernization andspecialized product development, with a particular focus on electric arc furnacetechnology, which now accounts for over 70% of American steel production.
5. Russia (6.2 Mt, -3.2%)
Russian steel production fell by an estimated 3.2% to 6.2Mt in March, continuing its quarterly decline trend (-3.8%). Russiansteelmakers continue to face significant challenges related to internationalsanctions, restricted access to certain export markets, and logisticalcomplications. Major producers like Severstal, NLMK, and MMK have beenredirecting exports to alternative markets in Asia, the Middle East, and LatinAmerica, but often at discounted prices. The production decline suggests theseefforts have not fully compensated for lost Western market access, thoughRussia's steel industry remains a significant global player.
6. South Korea (5.0 Mt, -5.3%)
South Korea experienced one of the steeper declines amongmajor producers, with output falling 5.3% to 5.0 Mt in March, continuing itsnegative quarterly trend (-3.6%). This downturn reflects challenges in keyexport markets and domestic consumption sectors, particularly automotive andshipbuilding. Korean steelmakers like POSCO and Hyundai Steel have beenfocusing on high-value specialty products and technological innovation tomaintain competitiveness, but continue to face pressure from Chinese imports andglobal overcapacity.
7. Türkiye (3.1 Mt, -2.8%)
Türkiye's production declined by 2.8% to 3.1 Mt, broadly inline with its quarterly performance (-3.4%). As a major scrap importer andsteel exporter, Turkish producers have been particularly affected by globalprice volatility and changing trade flows. The country's steel industry hasalso faced domestic economic challenges, including currency fluctuations andhigh inflation. Despite these headwinds, Turkish producers continue to benefitfrom their strategic location between European and Middle Eastern markets andrelatively modern production facilities.
8. Germany (3.1 Mt, -11.7%)
Germany experienced the most severe decline among topproducers, with output falling by an estimated 11.7% to 3.1 Mt, extending itssubstantial quarterly decline (-12.6%). This steep drop highlights the acutechallenges facing Europe's largest steel producer, including exceptionally highenergy costs, carbon pricing pressures, and weakening industrial demand,particularly from the struggling automotive sector. Major producers likeThyssenKrupp and Salzgitter have announced transformation strategies focusingon green steel production, but the transition remains costly and challenging.Germany's steel crisis has prompted calls for additional government support andprotective measures at the EU level.
9. Brazil (2.9 Mt, +6.6%)
Brazil posted strong growth of 6.6% to reach 2.9 Mt inMarch, outperforming its quarterly trend (+2.8%). This positive performancereflects Brazil's competitive advantages, including access to high-quality ironore and relatively low energy costs. Major producers like Gerdau, CSN, andArcelorMittal Brazil have benefited from infrastructure investments andrecovering domestic demand. Brazil's steel sector also continues to benefitfrom export opportunities, particularly to North America, though it facesincreasing competition in those markets.
10. Iran (3.3 Mt, +3.7%)
Iran increased production by 3.7% to 3.3 Mt in March,representing a significant reversal from its substantial quarterly decline(-12.8%). This volatility reflects the complex challenges facing Iraniansteelmakers, including international sanctions, domestic energy supply issues,and regional market fluctuations. Despite these obstacles, Iran hassubstantially expanded its steel capacity in recent years as part of efforts todiversify its economy away from oil dependence. The March recovery suggests somesuccess in adapting to sanctions through alternative trade channels,particularly with Asian partners.
Year-to-Date Production Still Negative
Despite the positive March figures, global steel productionfor the first quarter of 2025 remained slightly below last year's levels. TheJanuary-March period saw total production of 468.6 Mt across the 69 reportingcountries, representing a 0.4% decrease compared to the same period in 2024.
Key Takeaways:
• Global crude steel production increased by 2.9%year-on-year to 166.1 million tonnes in March 2025
• Asia and Oceania led growth with a 3.9% increase to 123.6Mt, while European production stagnated or declined
• China increased production by 4.6% to 92.8 Mt, whileIndia saw 7.0% growth to 13.8 Mt
• Germany experienced a steep 11.7% decline to 3.1 Mt,highlighting ongoing challenges for European producers
• Despite positive March figures, year-to-date globalproduction remains 0.4% below 2024 levels
• Regional disparities reflect different economicconditions and structural challenges facing steel producers
• Brazil (+6.6%) and Iran (+3.7%) were the only non-Asiancountries in the top 10 to show significant growth
• South Korea experienced a notable 5.3% decline despiteits technological advantages and focus on specialty products
• The industry continues to face challenges related toovercapacity, trade tensions, and the costly transition to lower-carbonproduction methods
• The 69 reporting countries account for approximately 98%of total world crude steel production
