China – world’s largest steel producer has recorded highest crude steel output in May’18 at 81.13 MnT amid strong profit margins.
According to National Bureau of Statistics (NBS) China’s crude steel output recorded the increase of 6% in May’18 against previous month. In May’18 nation produced 81.13 MnT of crude steel in comparison to 76.70 MnT in Apr’18.
According to data maintained with SteelMint, China’s monthly crude steel output in May has hit highest since past 7 years. As last highest recorded monthly crude steel output was at 76.70 MnT in Apr’18, and prior to this highest was recorded at 74.59 MnT in Aug’17.
Meanwhile on yearly basis country’s crude steel output in May’18 jumped by 12% against 72.26 MnT in May’17.
During first five months of CY18 (Jan-May) China produced 368.61 MnT of crude steel,higher by 7% against 345.79 MnT in Jan-May’17.
Monthly Average Domestic HRC prices in China increased sharply in May’18- On monthly average basis domestic HRC prices in May’18 stood at RMB 4,213MT jumped by 6% against RMB 3,968/MT (ex-works, including 17% VAT) in Apr’18.
Increased profit margins in May’18 resulted in increased crude steel output-Improved domestic demand majorly from construction and infrastructure sector lead to surge in steel prices.This in turn resulted in higher profits margins which pushed steelmakers in China to elevate the production levels.
As per reports, that utilization rates at steel firms across the country were above 71%, a level last seen before production curbs to curb pollution in late October’17.
Post production cuts,Chinese steel mills are running with full capacity and adding scrap steel to generate more output with the motive to have strong margins.
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