China's March daily steel output at record but set to slow
Post Date: 19 Apr 2014 Viewed: 385
Reuters reported that China's average daily crude steel output hit a record high 2.27 million tonnes in March as steelmakers ramped up on expectations of increased seasonal demand but a slowing economy may curb production in the months ahead.
Data from the National Bureau of Statistics showed that China's March crude steel output trumped the previous record high 2.217 million tonnes hit in January and February. The monthly output stood at 70.25 million tonnes up 2.2% from a year ago. NBS didn't provide a separate monthly figure for the first two months.
Government data showed that steel demand in the world's top producer and consumer traditionally improves in April and May as construction and manufacturing activities perk up after the New Year holiday, encouraging mills to raise production. Mills are expected to further boost output in April, but probably only modestly, as a cooling economy could curb demand growth for metals this year.
Ms Judy Zhu an analyst with Standard Chartered Bank in Shanghai said that "Steel output may continue going up slowly until May, but I do not rule out the possibility that it might fall on year from June. Many mills are struggling with tight cash flow, with a few facing permanent shutdown threats, while Beijing has no intention to boost investment to drive up steel consumption. Meanwhile, Beijing will take tougher measures to crack down pollution, curbing steel production."