According to National Bureau of Statistics (NBS) China’s crude steel output moved up marginally in Jul’18 to 81.24 MnT against previous month. However nation’s crude steel output is recorded at 80.2 MnT in Jun’18.
Meanwhile on yearly basis country’s crude steel output witness the growth of 10% in Jul’18 which was 74.02 MnT in corresponding month of previous year.
During first seven months of CY18 (Jan-Jul),nation’s crude steel volumes stood at 530.03 MnT, higher by 8% against 493.04 MnT in similar time frame of previous year.
Since last three consecutive months country’s crude steel continued to remained largely on the higher side despite continuous efforts to cut surplus production and prevent air pollution in China.
Strong domestic demand results to higher crude steel output-Amid recent production cuts to prevent excess steel capacities and to control air pollution, steel mills have improved their production efficiency by using higher grade of iron ore to maximize output and get good margins.
Meanwhile robust demand in domestic market over increased prices have given enough room to Chinese steel manufacturers to yield higher profits.Also,elimination of low cost producers and demand from downstream users in turn results to higher profit margins.
Meanwhile on going summer production cuts in Tangshan city of Hebei region and recently announced winter production cuts by Chinese Industry and environment from 1st Oct’18 till 31 Mar’19 will definitely help in controlling excess capacities in long term.
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