China’s crude steel production, the world’s biggest, fell for a second month amid regional power shortages during the peak summer season.

Output declined by 1 percent to 59.3 million metric tons in July from 59.9 million tons a month ago, according to data provided by the National Statistics of Bureau. Steel production hit a record of 60.3 million tons in May.

China’s southern regions may face temperatures of up to 39 degrees Celsius in the near term, exacerbating electricity supply tightness as residents increase use of air-conditioners, the National Bureau of Statistics said July 29. Shanghai, home to Baosteel Group Corp., the nation’s second-biggest mill, limited electricity use at 1,435 manufacturers for the first time this year, the local power supplier said last month.

Still, the impact of power cuts on steel production may be less than earlier expected, said Hu Yanping, a Beijing-based analyst with Custeel.com. Electricity supplies were rationed in 12 Chinese provinces in mid July, fewer than a month earlier, after rainfall boosted hydropower generation and lowered temperatures, the NDRC said July 29.

“Summer heat restrained power supply to some smaller mills in Jiangsu and other provinces last month,” Hu said. Still, “conditions are unlikely to get worse in August,” Hu said.

The July steel output gained 16 percent from a year ago, the statistics bureau said. For the first seven months, production rose 10 percent to 410.4 million tons, it said.