International Steel Mills

China Steel Output Jumps Despite Pandemic

Written by Sandy Williams


China’s July crude steel output jumped 1.9 percent from June and 9.1 percent from a year ago to 93.36 million metric tons, according to the National Bureau of Statistics.

Steel demand rallied after declining during the pandemic-induced shutdowns and is now benefiting from Chinese stimulus measures that include infrastructure building and housing construction. Average daily output was 3.01 million metric tons in July compared to 3.05 million tons the previous month. Demand for flat steel products for use in automobiles and appliances drove the surge, while demand for long products for construction lagged due to monsoon season.

The NBS report showed crude steel output from January to July totaling 593.17 million metric tons, a 2.8 percent increase from the same period in 2019.

MySteel Global estimates that Chinese production of hot rolled and cold-rolled coil leapt 28 percent in July. Mill sapacity utilization was at 95.16 percent as of Aug. 14.

Although Chinese output jumped in July, so did steel imports. Chinese import of steel materials in July tripled year-over-year to 2.61 million tons after doubling in June, reported Reuters.

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