China's crude steel output fell 2.3% to 803.8 million tons in 2015 over the previous year, government data showed, the first drop in more than three decades as the economy of the world's top producer slows.
Production also declined 5.2% to 64.37 million tons in December from the year before, according to data from the National Bureau of Statistics, dented by faltering demand.
China's government is pushing to erode overcapacity in the steel industry, as the country aims to shift economic growth towards more consumption rather than heavy investment. The nation's massive steel sector is said to have a surplus capacity of about 300 million tons.
China's crude steel output is expected to decline for a second straight year in 2016 on continued weakness in demand, according to a government study.
Steel prices tumbled over 35% in 2015, which has already forced many Chinese mills to slash output or shut permanently, with little indication of a strong rebound in steel demand.
China's economy grew 6.8% in the fourth quarter from a year earlier, the weakest since 2009, suggesting that the world's second-largest economy continued to lose steam late in the year.
Source: ISMW