Chinese Steel Output Surged Despite Coronavirus Impacts

SEATTLE (Scrap Monster): The most recent data published by the Chinese national Bureau of Statistics (NBS) indicates that the country’s crude steel production edged higher despite the impacts caused by the outbreak of the deadly coronavirus.

The country’s crude steel output surged higher by 3.1% in the opening two months of the current year. This is when matched with the corresponding two months last year. The steel inventories piled up during Jan-Feb this year, as mills remained optimistic of a sharp recovery in steel demand as the country returns to a state of normalcy. Incidentally, the epidemic has almost been wiped out of the country.

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According to NBS, the daily crude steel output averaged at 2.58 million tonnes in the initial two-month period in 2020. This is upon comparison with the average daily output of 2.54 million tonnes in the corresponding two-month period in 2019.

The notable jump in production, amidst halt on manufacturing and construction activity due to spread of the virus, has led to considerable rise in inventory levels with Chinese steel mills. The Chinese industrial output recorded year-on-year decline by 13.5% in Jan- Feb this year. Also, infrastructure investment dropped by almost one-third.

NBS expects rebound in Chinese economy during this month. The gains will continue in Q2 2020, it hoped.