[Ferro-Alloys.com] China’s NBS Reports 6.8% Industrial Growth

China's industrial sector demonstrated remarkable resilience in June 2025, with the National Bureau of Statistics (NBS) reporting a robust 6.8% year-on-year increase in value-added industrial output for enterprises above designated size. This performance exceeds the cumulative growth rate of 6.4% recorded for the first half of 2025, indicating an acceleration of industrial activity as the year progresses.

The month-on-month growth of 0.50% compared to May 2025 reflects continued momentum despite global economic headwinds. Perhaps most impressively, these figures represent the sixth consecutive month of growth above 5% for China's industrial sector in 2025.

What Do Production Volumes Reveal About Industrial Activity?

Beyond percentage growth rates, the absolute production volumes reported by the NBS provide concrete insights into China's industrial operations:

Key Production Metrics (June 2025)

The stellar performance of NEV production (+18.8%) stands in sharp contrast to the decline in cement output (-5.3%), highlighting China's shifting industrial priorities. With NEVs now accounting for nearly 44% of all vehicle production in China, the transformation of the automotive sector is accelerating rapidly.

The robust growth in crude oil processing (+8.5%) might seem counterintuitive amid China's energy transition minerals goals, but this reflects strong demand for petrochemicals rather than fuels. The ethylene production increase (+5.8%) confirms this trend, as petrochemicals serve as key inputs for everything from packaging to electronics components.

Steel production growth remained modest (+1.8%), indicating discipline in a sector often characterized by overcapacity concerns. This moderate growth aligns with China's focus on upgrading rather than simply expanding steel production.

How Is China's Overall Economic Performance in H1 2025?

The industrial figures form part of a broader economic narrative for China in the first half of 2025, with GDP growth showing resilience despite domestic and international challenges:

H1 2025 Economic Performance Highlights

• GDP growth: 5.3% YoY for H1 2025, with Q1 at 5.4% and Q2 moderating slightly to 5.2%
• Primary industry (agriculture): 3.7% YoY growth
• Secondary industry (manufacturing and construction): 5.3% YoY growth
• Tertiary industry (services): 5.5% YoY growth
• Quarter-on-quarter GDP growth in Q2: 1.1%, indicating continued expansion

• [Editor:tianyawei]