As per the recent data released by NBS (National Bureau of Statistics), during first three months of Q1CY19 (Jan-Mar) China’s crude steel output stood at 229.91 MnT which was 212.78 MnT in similar time period of previous year.
On monthly basis China’s crude steel production reported increase of 8% in Mar’19 to 80.33 MnT which was 74.58 MnT in Feb’19.
On yearly basis nation’s crude steel output went up by 9% in Mar’19 against 73.98 MnT in same month of previous year.
Strong domestic demand led to increase in crude steel output- Strong demand in nation’s domestic market and higher steel prices pushed Chinese steel mills to ramp up steel production in the month of March.
In the beginning of Mar’19 domestic HRC prices stood at RMB 3,810-3,840/MT in (Eastern China) as compared to RMB 3,700-3,800/MT (eastern China) in the beginning of Feb’19. All prices mentioned above include VAT taxes.
Lesser stringent production cuts this winter- Tangshan has been imposing production restrictions on industrial enterprises including steel mills as a part of their anti-pollution measures during winters from 16 Feb’19 in which steel mills had to cut their output from 40 to 70% depending upon the four categories they fall into.
However these emergency production cuts that were in force for about 26 days have been lifted by the Tangshan government results to ramp up in steel production from China.
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