China Steel Output Plunges in Early 2026 Amid Weak Construction Demand

• China's crude steel output fell 3.6% to 160 million tonnes in Jan-Feb 2026, driven by weak construction demand.
• The decline underscores structural challenges, a property crisis, and cautious mills despite broader economic growth.
• Producers are reluctant to build inventories due to demand uncertainty, impacting the usually stronger spring construction season.
• The prolonged real estate downturn has sharply reduced demand for construction materials like steel rebar and structural beams.
• Steel exports, an important outlet for surplus production, are also facing strain due to tighter licensing rules.