As per latest customs data released by Chinese Government, country’s crude steel output has registered an increase of 4% in Oct’16 against corresponding month of previous year. The same stood at 68.51 MnT in Oct’16 against 66.12 MnT in Sep’15.
However, on M-o-M basis, China’s crude steel production registered a fall of 0.49% to 68.51 MnT in Oct’16 to 68.17 MnT in Sep’16.
In first ten months of 2016, country’s crude steel output is recorded at 673.77 MnT up by 0.13% against corresponding period of last year.
Chinese steel mills are raising the production since three months to meet the increased demand from construction and infrastructure sector.
However, this increase in country’s crude steel production indicates China’s deviation from its promised path to curb steel overcapacity.
Although, Chinese mills have hiked the steel prices including iron ore and coking coal prices this year amid gains in domestic market.
Also Government’s de-capacity policy to reduce the excess capacity of steel output has very little impact on Chinese steel industry.
As the Chinese manufacturers are influenced by huge profits, therefore they deny to cut the over capacity of steel output.
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