China’s Crude Steel Production up by 1.5% M-o-M

In the latest numbers released by Chinese government, country’s crude steel output for May’16 is recorded at 70.5 MnT, up by 1.5% against Apr’16 and by 1.8% year-on-year basis.
This increase in production can be contributed to sudden surge in steel prices post Chinese Lunar New Year holidays, thus leveraging Chinese steel mills to increase their steel production.

However, increase in country’s crude steel output raises apprehension about government’s intentions to cut its excess steel overcapacity. This is because in the start of year 2016, Chinese government has planned to cut its steel production capacity by 100-150 MnT in next five years.

For the first five months from Jan to May’16, country’s crude steel output is recorded at 329.95 MnT, down by 1.4% against corresponding period of previous year.