As per the data released by the National Bureau of Statistics (NBS), China’s crude steel output declined by 5% M-o-M to 82.77 MnT in Sep’19 in comparison with 87.25 MnT in the preceding month over announced production cuts by Chinese government ahead of National Day holiday.
Tangshan city government has put the original curbs in place from 24 September to 7 October to ensure blue skies for the nation’s 70th National Day procession on 1 Oct’19. This attributes to the decline in the nation’s crude steel output.
Also, dull sentiments both in the domestic and export market over falling steel prices pushed Chinese steelmakers to trim crude steel output last month.
However, on a yearly premise, the nation’s output inched up by 2% in Sep’19 over 80.85 MnT in the corresponding month of CY’18.
During the first nine months (Jan-Sep) CY’19, China’s crude steel volumes stood at 746.80 MnT, witnessed a growth of 8% as compared to 693.21 MnT in the same time frame of CY’18.
Outlook for Oct’19- On October 9, Tangshan government ordered 29 of its 33 local steel mills to suspend their blast furnace production capacity by no less than 50% on average over October 10-31.
Also Tangshan, along with 27 other cities in the north, east and central China, may soon announce separate steel and sintering restrictions for the November-March winter season.
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