Global crude steel production declined 4.2% year-on-year in March 2026 to 159.9 million tonnes, according to the World Steel Association. The downturn affected 69 countries that account for about 98% of global production, as reported by The Hindu BusinessLine. The decline was primarily driven by sharp contractions in key producing regions, with China leading the overall weakness.
China, the world's largest steel producer, experienced a significant decline with output dropping 6.3% to 87 million tonnes in March. For the January-March period, China's production was down 4.6% at 247.6 million tonnes, as reported by The Hindu BusinessLine. The weakness in China, amid ongoing demand concerns, continued to weigh on global steelmaking, offsetting gains in other regions. However, recent developments show that China's steel sector faces additional challenges with FY2025 third-party sales declining 12% in local currency as consumer confidence weakened and government subsidies expired.
Regional trends remained uneven across the globe. Asia and Oceania, which account for the bulk of global output, saw production fall 3.9% to 119.3 million tonnes. The European Union recorded a 4.6% decline to 11.4 million tonnes, while the Middle East saw the sharpest drop with output plunging 33.5%. However, Africa and North America posted growth of 11.6% and 3.5% respectively, as reported by The Hindu BusinessLine.
In contrast to the global decline, India maintained strong momentum with production rising 9.4% year-on-year to 15.3 million tonnes in March and 10.8% in the first quarter. The United States also posted steady growth with output up 5.2% to 7.2 million tonnes in March, while Germany and Türkiye recorded increases of 7.5% and 6.4% respectively, as reported by The Hindu BusinessLine. India continues to emerge as a meaningful growth vector, with organic local-currency growth of 13% in FY2025 (18% in Q4), and AOS targets approximately 10% India revenue growth in 2026.
For the first quarter of 2026 (January-March), global crude steel production stood at 459.2 million tonnes, down 2.3% from a year earlier, reflecting continued softness in demand and supply adjustments across major markets, according to The Hindu BusinessLine. India's strong performance reinforced its position as the fastest-growing major producer globally. The quarterly decline was driven by the 16% local-currency revenue decline in China's Rest of World segment, though margins remained resilient at 8.7% despite the revenue compression.
