International Steel Price Market 13/01/2025: Driving Force from Manufacturing
On the Shanghai Futures Exchange (SHFE), construction steel prices remained unchanged at 3,138 yuan/t. This stability came after a slight recovery from the previous five consecutive days of decline.
According to the China Iron and Steel Association (CISA), China’s crude steel output in the first three quarters of 2024 reached 768 million tons, down 3.6% year-on-year. However, China’s manufacturing sector has become the main driving force, with demand from new energy, high-end equipment manufacturing and solar energy continuing to grow strongly.
Jiang Wei, Vice President of the China Iron and Steel Association, commented: “Although overall steel demand is on a downward trend, sectors such as new energy and high-end manufacturing are driving demand for specialty steel.”
Technological innovation and sustainable development strategy
Companies such as Baoshan Steel (Baosteel) are focusing on developing high-end steel products such as silicon steel. China’s silicon steel supply increased by 20% in 2023, but the growth rate slowed down in 2024, reaching only 5% in the first half of the year.
In particular, the Chinese steel industry is shifting to a low-carbon emission reduction model, with strong investment in green technology and sustainable production structures. This is considered an important factor to maintain its competitive position in the international market.
On the Dalian Commodity Exchange, iron ore prices increased by 0.4% to $753.5/ton. This recovery reflects increased demand from China, although the country’s steel production is forecast to decline slightly in 2025.
