China’s crude steel output in Oct’17 has surpassed the level of previous month and registered a marginal increase.
China’s monthly crude steel production showed the marginal rise in Oct’17 against previous month.In Sep’17, China’s crude steel production stood at 71.83 MnT rose slightly by 0.7% against Oct’17. This is China’s highest ever monthly crude steel output.
Nation’s crude steel performance reported the increase of 6% Y-o-Y basis to 72.36 MnT in Oct’17 in comparison to 68.51 MnT in Oct’16. Despite severe production cuts announced by the government in winter season to curb smog, China has shown growth in crude steel performance owing to high domestic steel prices.
In the time period of first ten months of CY17 (Jan-Oct’7) nation’s crude steel output increased by 5.2% to 709.19MnT as compared to 673.77 MnT in similar time frame of previous year.
Higher Steel prices in October lead to rising crude steel volumes-
Market participants mentioned,crude steel output increased in the month of Oct owing to higher steel prices amid gains in the domestic market.In the month of Oct domestic prices of HRC was averaged at RMB 4,069/MT (USD 613/MT) which has moved up by 42% against RMB 2,861/MT in Oct’16. However on monthly basis, domestic HRC prices in China fell by 2% in Oct’17 compared to RMB 4,150/MT (USD 625/MT ) in Sept’17.
However HRC export offers also shown the growth of 17% to USD 580/MT, FoB China in Oct’17 against USD 380/MT, FoB in Oct’16.
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