China's steel production hits record high in July

China's steel sector posted a record high output last month due to soaring domestic demand from a host of infrastructure projects as the country introduced massive stimulus measures to help the economy recover from the COVID-19 outbreak, industry data showed.

According to the China Iron and Steel Industry Association (CISA), crude steel production increased by about 9.1 percent from the previous year to 93.36 million tons in July, with a daily production of 3.01 million tons.

Pig iron production increased nearly 8.8 percent year-on-year to 78.18 million tons in July, while production of rolled steel was up about 9.9 percent year-on-year to 116.89 million tons, according to CISA.

Affected by COVID-19, major steel companies lost more than five percent of their revenue in the first quarter, while profits fell by more than half.

As macroeconomic policies that support growth strengthen the momentum of the economic recovery, steel demand in the processing industry is expected to continue to rise, the CISA said in a report.

China's largest steelmaker, China Baowu Steel Group, announced Friday that it has acquired a 51% stake in Taiyuan Iron & Steel (Group) Co Ltd as part of its efforts to become a global leader in steel production with an annual production of 100 million tonnes.

However, the growing supply was unable to meet the growing demand. Imports of steel materials into the country in July tripled to 2.61 million tons from last year, with imports from India and South Korea rising particularly strongly. China has become a welcome buyer.

Global crude steel production is set to contract in 2020, with robust growth in China offset by a sharp drop in the rest of the world, Anglo-Australian mining company BHP said in its annual earnings report released on Tuesday, as China will be the only major steel producer. the economy will grow this year, while advanced economies will not start recovering until 2021.