Upcoming Trade Shows in China for Metal Working Industries

The steel sector forms the backbone of China’s metalworking industry. The steel sector was once small and restricted by wartime challenges, but flash forward to the 2020s and China has become the world's leading steel producer. The road to this success began with the market reforms of 1978, which catapulted China into the global market. Over the years, the industry has seen some incredible highs and lows, specifically with high debt levels, price volatility, and increasing environmental scrutiny. Despite these hurdles, China's steel sector continues to adapt, focusing on curbing overproduction and expanding foreign investments in a bid to remain competitive. In 2023 and 2024, China’s metalworking industry saw an increase in revenue as steel exports soared to primarily developing countries with growing infrastructure needs. However, this spike in exports has led to an oversupply in the global steel market, resulting in substantial price drops. These lower prices have prompted numerous countries to impose tariffs on Chinese steel, aiming to protect their domestic markets. In response to the global glut, China’s government took decisive action in August 2024, halting approvals for new steel mills to manage capacity better and stabilise global prices. At the same time, weakening demand for steel within China has intensified the focus on exports, pushing many Chinese steelmakers to seek growth opportunities abroad. Amid domestic economic pressures, including a slowing property market, the government has encouraged companies to invest in foreign steel mills to address overcapacity while maintaining a foothold in international markets. These foreign investments aim to mitigate the risk of tariffs, provide easier market access, and support China’s evolving role in the global steel industry. China's steel industry is dominated by a handful of large state-owned groups, including Baosteel Group, Hesteel Group, and Shagang Group. However, the sector remains highly fragmented, with numerous smaller players competing across the market.