Angang Steel, the world’s third-largest steelmaker, reported a near $1 billion loss for 2024, citing overcapacity in China and weak demand. The company revealed in a stock exchange filing that it had posted a net loss of 7 billion yuan ($969 million), a significant increase from the 4.1 billion yuan loss it incurred the previous year.
The downturn comes amid a prolonged slump in China’s real estate market, which has traditionally been a major driver of steel demand. The company attributed its poor performance to “severe market conditions,” including a persistent lack of downstream demand, a weak market cycle, and low sentiment in the industry.
China remains the world’s largest steel producer, producing over a billion tonnes of steel in 2024. However, as demand from the domestic construction sector falters, steel exports surged to a nine-year high of 111 million tonnes, raising concerns about overcapacity in global markets.
In response, several countries have taken action. In February, U.S. President Donald Trump announced plans to impose a 25% tariff on all steel imports, including those from China, starting March 12. Meanwhile, Vietnam and South Korea—major importers of Chinese steel—have also implemented their own tariffs.
This month, China’s top planning body indicated it intends to reduce steel production in 2025, although no specific reduction target was set.
AFP
