China: Crude Steel Output Jumps 7% in H1 CY18 Amid Strong Domestic Demand

According to National Bureau of Statistics (NBS) China’s crude steel output registered growth of 7% to 450.06 MnT in H1CY18 against 419.02 MnT corresponding time frame of previous year.

On monthly premises nation’s crude steel output fall marginally by 1% to 80.2 MnT in June’18 against 81.12 MnT in May’18. Nation’s crude steel output is constantly recording high since past three consecutive months from Apr to June

Meanwhile on yearly basis country’s crude steel output surged by 10% to 80.2 MnT in June’18 which was 73.23 MnT in Jun’17.

Rise in crude steel output resulted in surplus profits-Strong demand in domestic market from construction and automotive sectors amid higher steel prices in first half of CY18 has pushed up Chinese steelmakers to surge the production levels in order to yield hefty profits.Also winter production cut was scheduled till Mar’18 after which mills in China resume their production at increased levels resulting to higher output.

As per reports, the supply gap after the elimination of “substandard steel” in the same time period of last year has got completely adjusted by the increased output of legal enterprises.

July crude steel output may observe decline - However summer season cuts recently announced in Tangshan city combined with dull demand in July may lead to fall in crude steel output in near term.