Steel Output

          According to National Bureau of Statistics, China’s crude steel, pig iron and finished steel products output in November totaled 69.31 million tons, 61.73 million tons and 101.03 million tons, down 22%, down 16.6% and down 14.7% year on year. Daily average output of crude steel, pig iron and finished steel products during the period was 2.3103 million tons, 2.0577 million tons and 3.3677 million tons, up 0.1%, up 1.2% and up 2.6% respectively from last survey.

Steel Supply

          It is estimated that China’s crude steel and finished steel products supply reached 67.49 million tons and 98.09 million tons in November, down 20.35 million tons or 23.2% and down 17.8 million tons or 15.4% year on year.

SteelHome Commentary

          China’s crude steel output dropped substantially in November year on year. On one hand, Beijing-Tianjin-Hebei region has entered heating season, and production restriction for environmental protection increased. On the other hand, steel mills which have completed production reduction task are heard to increase their output. At present, steel mills still enjoy acceptable profit. SteelHome believes that China’s December crude steel output will increase slightly month on month and fall sharply year on year.

---Steelhome----