Analyze the impact of Chinese steel on the world

​China’s steel industry, producing over 50% of the world’s steel, significantly influences the global construction sector. In recent years, China’s economic shifts have led to notable impacts on global construction.​

Domestic Slowdown and Global Export Surge

China’s property sector has faced downturns, with construction starts dropping by approximately 24% in the first half of 2024. This domestic slowdown resulted in a 1.7% decrease in steel production, totaling 1.005 billion tons—the lowest in five years. Consequently, China increased exports, reaching a record 110.72 million tons in 2024, up 22.7% from the previous year. ​

Global Price Implications

The surge in Chinese steel exports has led to an oversupply in international markets, driving down global steel prices. While this benefits construction companies through reduced material costs, it challenges steel producers in other countries, who struggle to compete with China’s lower-priced offerings.​

Trade Tensions and Protective Measures

Accusations of dumping—selling steel at unfairly low prices—have prompted several nations to implement tariffs on Chinese steel. For example, the U.S. imposed a 25% tariff in 2024 to protect its domestic industry. Similarly, Australia’s Anti-Dumping Commission issued preliminary duties on certain Chinese steel imports to safeguard local manufacturers. ​

Future Outlook

China’s plans to restructure its steel industry by cutting crude steel output aim to address overcapacity and stabilize global markets. These measures could lead to reduced exports, potentially increasing global steel prices and impacting construction costs worldwide.​
In summary, China’s steel industry dynamics play a pivotal role in shaping the global construction landscape, influencing material costs, trade policies, and market stability.