The invention discloses steel for a cup-shaped iron core of a loudspeaker and a production method thereof. The steel comprises the following chemical components in percentage by weight: 0.02 to 0.12 percent of C, less than or equal to 0.025 percent of H, less than or equal to 0.10 percent of Si, less than or equal to 0.9 percent of Mn, less than or equal to 0.015 percent of S, less than or equal to 0.020 percent of P, 0.01 to 0.07 percent of Al, and the balance of Fe and unavoidable impurities. The production method of the steel comprises the steps of converter or electric furnace smelting, refining of an electric heating furnace, argon blowing refining, vacuum refining, continuous casting, heating, rolling and controlled cooling; and the production technology is simple and easy to control. The product integrally improves product performance by controlling the content of the C and the H and the content of the Si, the Mn, the S, the P and the Al components, and effectively avoids the cracking, cutter adhesion and abrasive tool adhesion phenomena and the fish-scaling phenomenon on product surfaces during the processing.