China has reduced steel output to its lowest level in 7 months
According to the National Bureau of statistics of China, in October, the largest country in the world in production of steel smelted 81,52 million tonnes of metal compared to 82,77 million tons in September and 82,55 million tons a year earlier. This is the lowest level of production since March of this year.
Average daily steel production was 2.63 million tons, compared to 2.76 million tons in September, according to calculations based on official statistical data.
the Decrease in steel production in China has occurred against several waves of alert about a critical level of environmental pollution, which the Chinese government has set a goal to limit production to cut emissions and reduce smog.
Indicators of capacity utilization at steel mills in the first week of October fell to 56.2%, which is the lowest figure for the last seven years, according to data provided by the consulting firm Mysteel.
steel Production also declined because of low profit in steel mills.
in Addition to increasing prices for iron ore that put pressure on steel companies this year, analysts also noted that the production of electric arc furnaces was influenced by higher prices for scrap.
"the Price of steel scrap in October rose nearly 100 yuan (about 14,30 USD) per tonne compared to a month earlier," said tan Chuanglin, an analyst at CITIC Securities, explaining that the shortage of supply and seasonal factors.
"the output will decline further in the last two months of the year," said tan before publishing the data.
nevertheless, since the beginning of the year in January-October 2019 the production of steel at the metallurgical enterprises of China amounted to 829,22 million tons, which is 7.4% more than in the same period last year.