So far in CY17 China’s crude steel output has declined to lowest in Nov’17
China’s monthly crude steel production declined in Nov’17 against the previous month.In Nov’17, China’s crude steel production stood at 66.15 MnT tumbled by 9% against 72.36 MnT in Oct’17. This is China’s lowest ever monthly crude steel output so far in CY17.
However on yearly basis country’s crude steel performance reported a marginal decline of 3% Y-o-Y basis in Nov’17 in comparison to 68.23 MnT in Nov’16.
In northern China steel mills have started trimming their production capacities as per new policies introduced by the Chinese government to prevent smog in domestic market.The production cut has already started from mid November which will continue till March’18.
Although in the tenure of eleven months of CY17 (Jan-Nov’17) nation’s crude steel output increased by 5% to 775.34 MnT as compared to 741.56 MnT in similar time frame of previous year owing to higher profit margins from finished steel in CY17.
Lower production volumes leads to surge in flat steel prices-In Nov’17 domestic prices of HRC was averaged at RMB 4,075/MT (USD 616/MT) which has moved up by 22% against RMB 3,338/MT (USD 505/MT) in Nov’16. However on monthly basis, domestic HRC prices in China rose marginally by 1% in Nov’17 compared to RMB 4,044/MT (USD 611/MT ) in Oct’17.
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