China’s August crude steel output slumps: Correction
Posted on 16 September 2021
China's crude steel output in August fell to the lowest level since March 2020 after the central government required steel mills to keep full-year steel output and exports flat to 2020 levels.
Crude steel output at 83.24mn t in August fell by 4.3pc from July and by 13.2pc against a year earlier, the National Bureau of Statistics (NBS) said. Average daily production fell by 4pc to 2.69mn t/d from 2.8mn t/d in July and by 14.1pc from 3.13mn t/d in June. January-August crude steel output rose by 5.3pc from the same period last year to 733mn t.
Finished steel output in August fell by 10.1pc to 109mn t from a year earlier. Pig iron output fell by 11.1pc to 71.53mn t over the same period.
Tighter steel supplies drove steel prices up from August. Argus Shanghai rebar ex-warehouse prices increased by 350 yuan/t or 6.8pc during 3 August-14 September. Argus Shanghai hot-rolled coil prices increased by Yn100/t or 1.8pc over the same period.
China produced 1.065bn t crude steel in 2020. China needs to limit crude output to 332mn t during September-December to achieve its full-year target for 2021. China produced 364mn t crude steel output in September-December 2020, so policymakers will push for crude output cuts of 32mn t, or 8.7pc, for the rest of the year.
Source : Argus