Manufacturing accounted for more of China's steel consumption than construction for the first time in 2025, reaching 51%, according to the China Iron and Steel Association. Its share rose to 52% in the first half of 2026, as the association described the industry as entering a new phase of higher-end production, digitalization and greener operations.

The shift points to a change in the balance of demand between two major steel-consuming sectors. The higher manufacturing share, however, does not by itself establish whether the volume of steel used by either sector increased or decreased.

Production and exports

The association said steelmaking is moving from experience-based methods toward data-driven operations. By the end of September 2026, 307 steel companies had completed or partially completed ultra-low-emission upgrades. The figure includes both completed and partial upgrades, so it does not indicate how many companies had finished the work in full.

Steel exports have also shown a combination of declining volumes and rising prices, while export order has continued to improve, according to the association. Those trends do not on their own explain what drove the price increase or establish how long it will continue. Subsequent changes in export volumes and prices will help clarify whether the pattern persists.