China increased steel production by 4.1% y/y in January-April

In January-April 2023, China increased steel production by 4.1% compared to the same period in 2022 – up to 354.39 million tons. SteelOrbis reports about it citing the Chinese National Bureau of Statistics (NBSC).

In April, Chinese steelmakers produced 92.64 million tons of steel, which is 1.5% more than in April 2022.

Chinese steelmakers cut steel production in April compared with March to balance supply and demand and boost product prices after a month-long slide. Average steel prices peaked in March as demand improved during January-March. However, there was an oversupply of steel, which caused prices to fall in April.

China’s steel production is expected to face more pressure in the second half of the year as the country’s government announced plans to cut steel output from 2022.

Pig iron production in April increased by 1% compared to April 2022 – up to 77.84 million tons. In January-April 2023, the indicator increased by 5.8% y/y – up to 297.63 million tons. The output of finished steel for the month was 119.95 million tons (+5.7% y/y), and during January-April – 446.36 million tons (+5.2% y/y).

As GMK Center reported earlier, in 2022, China reduced production of steel by 2.2% compared to 2021 – to 1.01 billion tons. Steel production in the country fell due to the slowdown of the economy and the downturn in the real estate market.

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