Published: Jul 29, 2026 | By: Aldrich Ma

According to the latest data released by the World Steel Association (worldsteel) on July 23, 2026, global crude steel production reached 155.7 million tonnes in June 2026, marking a 1.7% year-on-year increase. This growth was primarily driven by Africa's exceptional performance and a steady recovery in Europe, though it was partially offset by a sharp decline in the Middle East and continued weakness in the Chinese market.

Regional Performance Highlights

Africa emerged as the standout performer, with production surging by 20% to 2.2 million tonnes, driven by new capacity additions and growing domestic infrastructure demand. The European Union (27 countries) saw a 4.6% increase to 10.8 million tonnes, as European steel mills benefited from improved order books following new import policies. North America grew by 5% to 9.5 million tonnes, with the United States recording a 3.5% increase to 7.2 million tonnes.

Asia and Oceania, accounting for nearly three-quarters of global production, recorded 115.2 million tonnes in June, a modest 1.5% increase. However, the Middle East experienced a sharp 13.4% decline to 4.0 million tonnes, attributed to ongoing geopolitical tensions, including the impact of the US-Iran conflict. Russia and other CIS countries (including Ukraine) also saw a 2.2% decrease to 6.8 million tonnes, as the Russia-Ukraine war and related sanctions continued to suppress output in the region.

China's Production Stagnation

China, the world's largest steel producer, recorded only a 0.4% increase in June to 83.7 million tonnes, with cumulative output in the first half of 2026 declining by 3% year-on-year. The data shows that global crude steel production in the first half of 2026 totaled 931.5 million tonnes, down 0.7% year-on-year. This trend reflects the dual challenges faced by China's steel industry: weak demand and structural adjustments.

Other Key Producers

India maintained strong growth momentum, with June output rising 4.5% to 14.1 million tonnes, driven by massive infrastructure investment and manufacturing expansion. Vietnam delivered the most impressive performance, soaring 27.5% to 2.6 million tonnes, fueled by new capacity additions. Germany grew 9.5% to 2.9 million tonnes, and Turkey rose 14.7% to 3.3 million tonnes.

Market Analysis & Industry Outlook  
The current global steel market landscape shows clear regional divergence: emerging markets in Africa and Southeast Asia are becoming growth engines, while traditional steel giants like China are undergoing structural adjustments, and the Middle East faces severe challenges due to geopolitical conflicts. For steel traders and buyers, this means market demand is shifting from a single-source market toward diversified sourcing strategies.

Meanwhile, the European Union significantly reduced steel import quotas by 47% effective July 1, 2026, doubling excess tariffs from 25% to 50%. This trade protection measure will directly impact steel exports from non-EU free trade partner countries, including China. The China Iron and Steel Association has expressed strong opposition, pointing out that the core challenges facing the EU steel industry stem from its own competitiveness issues — electricity prices are 2-3 times higher than in the US, and natural gas prices are nearly five times higher — rather than from imported products.

Advice for Steel Buyers  
Watch for regional price differentials: China's domestic steel prices remain under pressure due to weak demand, while African and Southeast Asian markets show strong growth. Buyers can explore opportunities across regions and optimize their sourcing strategies.

Stay alert to EU trade policy changes: The new EU quota policy is now in effect, increasing the cost of steel exports to Europe. If you have European project needs, it is recommended to plan procurement and logistics arrangements in advance.

Seize pricing opportunities: With China's domestic steel demand currently sluggish, prices remain at lower levels. For buyers with forward procurement needs, consider locking in orders at these price levels.

Source: Based on reports from S&P Global, TASS, and SteelOrbis