75 Steel Mills in China Collapse Together, 100,000 Jobless Overnight; 2025 Disaster Ahead!

On December 24, 2024, industry insider Mr. Yuan revealed on social media that 75 steel companies in China have halted production. The main reason: steel products are not selling, and the more they produce, the more they lose. Many factories simply have no choice but to stop production. Mr. Yuan, from Tangshan, Hebei—a city known as the "steel capital"—shared his concerns on Douyin, the Chinese version of TikTok. He stated that many steel mills are struggling to stay afloat, with some even finding it difficult to pay their employees. Given the uncertain market outlook, he expressed worry for workers whose families depend on incomes from steel factories.
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[stevenmitchell]

Chinese steel never actually meets the specifications for the grade they claim it to be. The pervasive tendency to cut corners and use substandard materials in lower quantities necessary to cut costs and increase profits is rife in ALL Chinese industries.

[Gruffydom]

It dumb as hell that Australia exports the iron ore and the good type of coal needed to make steel all the way to China because if its worried about its own CO2 production. But it’s ok to buy that steel back again after China has created the CO2. Utter madness.

[SAM_Felipe]

Such a waste of resources and investment. Stop investing in China.

[Rafalga]

The closure of these mills that produces substandard products sounds good to me.

[henrytoledo]

If financial advisors tell you to invest in China. Go to another company

[henrybialik]

Steel from China has always been subpar. Barely meeting minimal specifications.

[greggwilliamson]

I cannot understand people working for months with no pay. CEOs making millions while workers starve. Question: Isn't that what started the whole "communist revolution" last century? What has communism accomplished? Different group of rich people. Period.🤔

[ix-Xafra]

Well they won't be needing australian coal.
The business of building empty cities used lots of steel and has declined.

[Sodomantis]

I love how Chinese people talks about this like its an economic downturn, like the ones in the west. No sweetie, your decoupled and going back to the same economic prosperity as that of your grandparents. Have fun Xi. And remember, don't eat the food.

[Meltyhead]

The real estate market in China has collapsed and will never recover. There will not be new demand for new buildings. The steel mills were at over capacity to meet this market and now it it gone for good. The population in China is in inevitable decline.

[carlnapp]

The mills shown at the beginning have been closed for at least a decade.

[BehuraStudio]

You KNOW it’s REALLY bad when steel mills are going down, (aka the foundation of many projects the government could ever invest in)

[rionthemagnificent]

I have 3 words.. "Learn to farm." You're going back economically.

[ShannonBailey]

Upper management already left the country 😂

[tharrison]

What country would buy steel from China, it's the worst in the world, we want German or American steel, not cheap brittle steel from China.

[Joelthek]

the bigger steel mills most likely acquired the market share of the smaller mills. there are thousands of steel mills in China but the trend is consolidation of the big boys and closing down of smaller plants. sad. the rich get richer, the middle class gets stomped out.

[atticusseverus]

Every time I come across chinese steel of any sort on any of my construction jobs its always been trash, week and severally underperforming in the work its required to fulfill. I've been very open about that, few that choose to say nothing then always have something to say once they're the ones having to deal with the trash while attempting to install the crap.

[lvmnoneofyourbusiness]

So, has upper management lost their jobs, suffered pay cuts and benefit losses?
I'd venture to say, probably not.
It's always the workers that suffer.

[roger]

China must have the best workers in the world. Who else would work for 6 months without getting paid. " Employment with Chinese characteristics"

[shubus]

Hopefully tariff's on Chinese steel. Nobody want's their under-spec steel.