China's steel production to hit record high in 2018

China's annual steel production is expected to set an annual record of 923 million tonnes in 2018, before falling to 900 million tonnes next year. This was announced by the government on Monday.

According to Li Xinchuang, the president of the world's largest steelmaker jumped from 831.73 million tonnes this year in 2017, as major factories ramped up production to fill the gap after Beijing shut down low-alloy steel production facilities that had not previously been included in the official data. at the China Institute of Metallurgical Planning and Research.

“Steel production is driven by the overall economic situation and demand in both domestic and global markets,” Li said in a briefing, adding that China’s ongoing anti-pollution campaign and uncertainty stemming from Sino-US trade frictions. will also affect the steel market.

The consultancy also predicted that steel consumption in China would fall to 800 million tonnes in 2019 from 820 million tonnes this year due to lower demand in the real estate, automobile and energy sectors.

China is expected to consume 1.206 billion tonnes of iron ore this year, up 1.6 percent from a year earlier, the institute said in a report. The use of a key steelmaking ingredient will decline to 1.147 billion tonnes next year, and steel production will decline, he said.

The government research body also predicts that China will export 55 million tons of steel products in 2019, up from 56.2 million tons this year.