[Alpha Biz= Kim Jisun] South Korea’s steel production is projected to reach its lowest level in 15 years, with industry challenges expected to persist next year due to global oversupply and rising protectionism. The government has also signaled potential structural adjustments in the sector.
According to the World Steel Association on the 28th, South Korea’s crude steel output fell 4.8% year-on-year to 5 million tons in November. Cumulative production from January to November reached 56.1 million tons, down 3.7% from the same period last year. Crude steel output is considered a key indicator of overall industry trends, reflecting both domestic and broader sectoral changes.
If the decline continues, annual production for 2025 is expected to total around 61 million tons, the lowest since 2010, when output was 58.915 million tons. In December, steelmakers are likely to further reduce production, particularly of rebar, in response to oversupply stemming from the slowdown in the construction sector.
The slowdown is not unique to South Korea. China’s crude steel production fell 10.9% in November compared with the same month last year, and cumulative output for January–November dropped 4.0% year-on-year. Germany (-9.3%), Russia (-5.0%), Japan (-3.9%), and Brazil (-1.5%) also saw declines, while India (+10.3%), the United States (+3.2%), and Türkiye (+2.0%) recorded increases. Overall, global crude steel output is expected to decline roughly 2% in 2025 compared with last year.
Looking ahead, the global steel market faces continued uncertainty. The World Steel Association had projected a 1.3% increase in global steel production next year, assuming a moderation in China’s market contraction. However, weak demand in China’s construction and real estate sectors, combined with a strengthening global protectionist trend, suggest that the steel industry’s outlook for 2026 remains challenging.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
