Posted on 16 Mar 2021
China's crude steel output increased by 12.9pc on the year to 174.99mn t in January-February, according to China's national bureau of statistics (NBS).
NBS combines January and February data to smooth out the effects of the week-long lunar new year holiday that falls in either month. Total output slowed but rose on a daily basis from December. The average monthly output for January and February was 87.5mn t, down from 91.25mn t in December. Average daily crude steel output rose by 1pc to 2.97mn t/d in January-February from 2.94mn t/d in December.
January-February finished steel output rose by 23.6pc to 209.53mn t from a year earlier. Pig iron output rose by 6.4pc to 144.75mn t over the same period.
Chinese mills usually step up production in January and February to prepare for the high season of steel consumption in March and April, especially for construction steel rebar and wire rod. Upbeat market expectations lifted Shanghai rebar ex-warehouse prices to 4,750 yuan/t ($730/t) on 3 March, the highest level since Argus launched the price series in April 2018.
But China's pollution control and production restriction on steel showed signals of tightening after Beijing began pushing green targets under its new five-year plan with some officials calling for lower steel output in 2021.
Carbon emission from steel industry is the highest among China's manufacturing industries and accounts for 15pc of its total carbon footprint.
Source:Argus
