China increased steel production by 6.2% m/m in October

Chinese steelmakers increased steel production by 6.2% in October 2024 compared to the previous month, and by 2.9% compared to October 2023, to 81.88 million tons. It is reported by XM.

The October figure ended a four-month decline in the industry. This was driven by improved demand and market sentiment amid a recent surge in economic stimulus from Beijing.

Average daily steel production for the month was about 2.64 million tons, up from 2.57 million tons in September and 2.55 million tons in October 2023. Steel production is expected to decline in November due to seasonal factors.

In January-October, steel production in China fell by 3% year-on-year – to 850.73 million tons.

As GMK Center reported earlier, China produced 1.019 billion tons of steel in 2023, up 0.6% from 2022. Thus, the downward trend in the country’s steel industry has stopped after two consecutive years of declining production.

Last year, the Chinese authorities did not impose restrictions on steel production in line with their ambitions to reduce CO2 emissions, which contributed to an increase in production and revenue of local steelmakers.

China’s steel exports in 2023 increased by 36.2% y/y – to 90.3 million tons. Steel imports amounted to 7.64 million tons, down 27.6% y/y. Iron ore imports for the year increased by 6.6% y/y – to 1.179 billion tons.