Posted on 17 Mar 2022
China’s crude steel production in January-February decreased 10% on the year to 157.96 million mt, data from the National Bureau of Statistics showed March 15.
The daily average in the first two months declined 3.7% from the December level to 2.677 million mt/day.
China’s pig iron output in January-February fell 10.5% on the year, reaching 132.13 million mt, while the daily figure also dropped 3.7% from December, to 2.239 million mt/day.
The month-on-month decline in both crude steel and pig iron output was in line with market expectations, as winter output cuts in northern China intensified in February during the Winter Olympics, sources said.
As steel output fell, it also contributed to lower steel inventories in March, supporting steel prices despite sluggish steel demand caused by the slowdown in China’s property market.
However, output cuts in northern China, mainly in the Hebei and Shanxi provinces, have been gradually eased since mid-March after the Paralympic Games and the Two Sessions ended.
As a result, China’s steel production is expected to rise in March.
Some sources were concerned about oversupply situation in the market that would weigh on steel prices, as property sector remained a drag to steel demand.
Source:Platts
