As per the data released by National Bureau of statistics China’s crude steel output was recorded at 77.62 MnT in Nov’18 drop by 6% against previous month.Nation’s crude steel output stood at 77.62 MnT in Nov’18 as compared to 82.55 MnT in Oct’18.
Output has lowered and hit 7-month low as prior to this lowest was seen in the month of Mar’18 when output stood at 73.98 MnT.
Thus strict winter productions cuts which was initiated in Nov’18 which resulted in drop in nation’s crude steel output. Few mills in China have started to curtail output in order to meet production target of the year.
Nation’s steel output decline over slow demand-In the month of Nov’18 prices witnessed significant drop compared to October month which resulted to lower profit margins and sluggish demand.Meanwhile buyers also await as steel prices have bottom out in domestic market.In addition to this slow growth rate in industrial sectors and lower automobile sales in turn result to lower steel output in China.
However on yearly basis nation’s crude steel output rose by 17% in Nov’18 which was 66.15 MnT in Nov’17.
During first 11 months of CY18 (Jan-Nov) nation’s crude steel output surge by 10% and stood at 853.38 MnT compared to 777.97 MnT in the same time frame of previous year.
Domestic steel prices in Nov’18- In the beginning of the month domestic HRC prices stood around RMB 4,030-4,050/MT (Eastern China) decline by 9% as compared to RMB 3,690-3,730/MT (Eastern China) in Dec’18
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