Posted on 25 Oct 2022
China’s crude steel output rose to its highest level in three months in September as steel mills ramped up production in anticipation of increased construction activity ahead of winter.
The world’s top steelmaker churned out 86.95 million tonnes of the metal last month, according to data from the National Bureau of Statistics on Monday, up 3.7 per cent from 83.87 million tonnes in August.
The September output brought China’s total production in January-September to 780.83 million tonnes, down 3.4 per cent on the same period last year and compared with a 5.7 per cent contraction in January-August.
Production grew 17.6 per cent compared with the same month a year ago, accelerating from a 0.5 per cent increase in August and rising the most since March 2021, based on data from the World Steel Association.
The Brussels-based group expects Chinese steel demand to fall 4 per cent for the whole year, driving a projected 2.3 per cent contraction in global demand amid surging inflation and rising interest rates.
BHP Group Chief Executive Mike Henry on Friday pointed to a 1-2 per cent drop in China’s steel output this year, before a rebound of 1 per cent next year, adding 2022 could still be “another billion tonne-plus” year.
September’s average daily output in China was 2.9 million tonnes, according to Reuters calculations, compared with an average of 2.71 million tonnes in August.
Chinese steel mills had shut down some blast furnaces in the second quarter as iron ore prices soared, while domestic demand for the metal slumped because of troubles in the country’s giant property sector.
However, many mills restarted production ahead of what is normally the peak construction season in September and October.
Imported iron ore stocks at Chinese ports stood at 131.2 million tonnes on Oct. 14, declining steadily over the previous four weeks, SteelHome consultancy data showed.
Stocks have, however, picked up slightly over the last week.
Source:Reuters
