China – world’s largest steel producer has recorded crude steel production of 808.36 MnT in CY16.
According to recent data released by National Bureau of Statistics, China’s crude steel output in Apr‘17 increased sharply by 5%, Y-o-Y basis and was recorded at 72.78 MnT in Apr’17 against 69.42 MnT in Apr’16.
China’s monthly crude steel output figure has hit record high in Apr’17 surpassing the previous month’s highest of 72 MnT.
However, on monthly premises China’s crude steel output witnessed the minute rise of 1% in Apr’17 as compared to previous month. In Mar’17 the same stood at 72 MnT.
In first for months of CY17 (Jan-Apr’17) nation’s crude steel output increased by 4.8% to 273.58 MnT as compared to 261.15 MnT in similar time frame of previous year.
The rising steel output in China underscores the challenge for the government as it aims to slash 50 MnT of low-grade outdated capacity this year.
Chinese steel prices tumbled in Apr’17 on dull trades & drop in futures
Domestic HRC prices in eastern China fell by around RMB 200/MT in Apr’17. HRC prices in China which were at RMB 3,330-3360/MT (ex-works) in beginning of Apr’17 declined to RMB 3,140-3,170/MT (ex-works) by the month end.
Similarly Chinese HRC export offers dropped from USD 470-480/MT, FoB China to USD 420-425/MT, FoB China by the end of the month.
Export offers declined on falling steel futures and pessimism prevailing in domestic market over dull trades.
Increasing steel production is likely to further pressurize prices in China.
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