China’s Crude Steel Output to Top One Billion Tonnes

SEATTLE (Scrap Monster): The Chinese crude steel output is likely to hit new record high in 2020. The production is likely to surpass 1 billion tonnes, mainly driven by escalated demand on the back of stimulus measures announced by the Chinese administration, says a new report published by the China steel logistics professionals committee.

However, the Metallurgical Industry Planning and Research Institute foresees marginal decline in Chinese crude steel output by 0.7% to 981 million tonnes in 2020.

As per most recent production data published by the World Steel Association (worldsteel), the country’s crude steel production during the initial eleven months of 2019 totalled 904.18 million tonnes, significantly higher by7% when matched with the year before. The annual production in 2019 is expected to fall short of 1 billion tonnes level.

Although China has announced significant reduction in its installed steel capacity in recent years, the output has not registered notable decline. The country still accounts for more than 50% of the world’s crude steel production and is being considered as the major contributor of global steel overcapacity.

Meantime, market sources indicate that local steelmakers in China have begun stoppages on account of maintenance programmes, taking advantage of the soft winter market demand, especially for long products. As many as 26 Chinese steel manufacturers, including Xuanhua Iron & Steel Group Co., have already declared maintenance shutdowns at their facilities, mainly blast furnaces, bar mills and wire rod mills.