China’s crude steel production in September rose by 10.9pc to 92.56 from September 2019 at an average daily output of 3.085mn mt during the month, according to China’s National Bureau of Statistics. In Jan-Sep period, crude steel output rose by 4.5pc to 781.59mn mt from the prior period.
Robust recovery in Chinese economy fueled by government stimulus supported steel companies to increase production post the COVID-19 pandemic. Demand for steel from auto and construction segment supported domestic steel prices and helped companies offset higher iron ores price in the later half of the nine-months period. Despite higher production rates, China’s steel exports have remained tepid due to economic stress in importing countries. Imports, however, rose post the pandemic as Chinese buyers took advantage of the pandemic and imported steel at prices lower than the domestic market.
In September, China’s steel output rose to 118.06mn mt, up by 12.3pc from September 2019. In the first nine months, steel production increased by 5.6pc to 962.4mn mt from the prior year.
Pig iron production improved by 6.9pc to 75.78mn mt in September, while from Jan-Sep period output was 665.48mn mt, up by 3.8pc from a year ago.
|China’s steel production in September|
|Unit: mn mt||Sep||YoY Change||Jan-Sep||YoY Change|