BEIJING, March 17 (Reuters) - China's crude steel output in the first two months of 2025 slid 1.5% from a year earlier, official data showed on Monday, despite better margins and stronger exports.

The world's largest steel producer manufactured 166.3 million metric tons of crude steel between January and February, the National Bureau of Statistics (NBS) said.

The annual decline defied expectations of some analysts who had forecast a year-on-year rise, citing higher exports.

Steel exports rose 6.7% over the first two months from a year earlier to 16.97 million tons, customs data showed last week, partly because steelmakers rushed shipments to beat the risk of a global trade war after U.S. President Donald Trump took office in January.

The total output in January and February is equivalent to an average daily output of about 2.82 million tons, 0.7% higher than 2.8 million tons a day in the same period last year, according to Reuters calculations based on the official data.

That was also higher than 2.45 million tons a day in December.

China combines import data for January and February every year to smooth out the impact of the week-long Lunar New Year, China's biggest holiday.

The World Steel Association said last month in its report that China's output in January slid by 5.6% year-on-year to 81.9 million tons.

China's steel output in March is expected to rise as mills ramp up production due to strong margins, said analysts.

Around half of the steelmakers in a weekly survey by consultancy Mysteel were operating at a profit at end-February, versus only about a fifth for the same period in 2024.

Analysts also noted that some mills were trying to seize more orders as a global trade war was clouding the demand outlook in the months ahead, threatening steel prices.