China sets new record for steel production

Ahead of winter flock production restrictions as part of environmental measures, Chinese steelmakers have recorded production at record levels.

Steel output rose 7.5% year on year to 80.85 million tonnes. This means that the daily rate is 2.695 million tons, surpassing the previous record high of 2.673 million tons, published in June. Output in the first nine months of the year rose 6.1 percent to a record 699.42 million tonnes.

Chinese factories have increased production to capitalize on an unusually long period of high prices and healthier margins. Steel rebar used in construction rose this week to its highest level this year, while iron ore prices surged to a March high, ahead of winter pollution control production restrictions that should continue to offer support in steel markets. country.

China's steel industry, which accounts for about half of global production, has recovered from a crisis that peaked at the end of 2015 by closing outdated or illegal factories and enforcing tighter environmental standards. Over the medium term, anti-pollution measures should bolster steel and iron ore prices.

Economic growth in China, embroiled in a trade war with the United States, slowed more-than-expected in the third quarter. Steel demand in China will not increase next year, as the World Steel Association said this week, as it cut its forecasts for global demand growth.