In September this year, China’s outputs of pig iron and crude steel totaled 71.54 million mt and 82.11 million mt, decreasing by 3.3 percent and 5.6 percent year on year, while declining by 4.13 percent and 4.98 percent month on month, respectively, as announced by China's National Bureau of Statistics (NBS) on October 18. The decline in crude steel production was due to the increased losses incurred by most mills due to high raw prices of iron ore and coking coal. However, China’s finished steel output amounted 117.82 million mt in September, increasing by 5.5 percent year on year, while up 1.12 percent month on month.
The average steel prices moved up first in September, while moving down during late September amid cautious expectations as regards the future prospects for the steel market, still high finished steel supply, and insufficient demand.
Though crude steel output indicated declines both on month on month and year on year, slack demand still dragged prices down. Stock replenishments ahead of the long National Day Holiday were not as good as market players had expected, exerting a negative impact on steel prices. In October, demand has not improved significantly, negatively affecting steel prices.
In the January-September period this year, China’s outputs of pig iron, crude steel and finished steel amounted to 675.16 million mt, 795.07 million mt and 1028.87 million mt, increasing by 2.8 percent, 1.7 percent and 6.1 percent year on year, respectively. The crude steel production increase rate was slower compared to 2.6 percent rise recorded in the January-August period.