Due to China's decision to keep this year's steel production at the same level as that in 2020, global steel production decreased by 1.4% year-on-year to 156.8 million tons in August.
In August, China's crude steel output was 83.24 million tons, a year-on-year decrease of 13.2%. More importantly, this is the third consecutive month of decline in production.
This means that if the output remains stable for the rest of this year, the goal of maintaining the annual output at the level of 2020 (1.053 billion tons) seems to be achievable. However, the seasonally improved demand may once again stimulate the appetite of steel mills. Some market participants believe that steel production will rise from September to October.
A major Chinese trader told that it is much easier to reduce production when demand is low. When demand is strong, all factories can find ways to avoid government policy of limitation on production. However, the government is really very strict this time.
Win Road International Steel Product
Post time: Sep-29-2021