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China Steel Output Slumps To Seven Month Low

Dec. 21, 2018

China’s crude steel output slumped to a seven month low in November thanks to falling profit-margins at mills and winter pollution controls on emissions in the major northern steel-producing cities and regions.

China Steel Output Slumps To Seven Month Low

The November production data on Friday showed China produced a total of 77.62 million tonnes of steel last month, down 7.1% from the all-time record of 82.55 million tonnes in October.


It was the lowest level since April, according to Friday’s report from China’s National Bureau of Statistics on Friday.


But November’s output was still a very solid 15.8 above the 66.15 million tonnes produced in November last year.


China’s average daily output also dipped to the lowest level since April, at 2.59 million tonnes.


But that was still much higher than the 2.2 million tonnes per day produced in November of last year.


Output over the first 11 months of the year was 857.37 million tonnes, up 6.7% on the same period last year, according to Friday’s report.


Analysts reckon December will see a similar fall, while January could see a boost in production (and imports and exports) ahead of the Lunar New Year holiday that starts February 2.


Big steelmaking cities such as Tangshan and Xuzhou have asked steel mills to further curtail output as city officials are concerned they will not meet their pollution reduction targets for the year.


“The government expects several bouts of heavy pollution to blanket northern China in December. The industrial heartland of Hebei, Shandong and even the southwestern province Sichuan have issued smog alerts last week.


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