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China's avg daily steel output falls in October m/m-stats bureau

Date 11/14/2017 3:57:12 PM Source: Reuters
    SHANGHAI, Nov 14 (Reuters) - China's average daily crude steel output fell for a second straight month in October from the previous month, government data showed on Tuesday, as the world's top steelmakers curbed output to help reduce smog over winter.

    Daily steel output dipped 2.5 percent to 2.334 million tonnes in October, from 2.394 million tonnes in September, according to Reuters' calculations based on the data from the National Bureau of Statistics.

    Monthly output still rose 0.7 percent to 72.36 million tonnes in October, which has one day more than September, and was also up 6.1 percent from a year ago, according to the data.

    Steel mills in big producing cities including Tangshan and Handan in Hebei province have been ordered to largely cut production in the winter months as the government tries to crack down pollution and clear its skies. 

    "The fall is within expectations due to the government's crackdown on environmental pollution and a one-week national holiday at the start of the month," Qiu Yuecheng, an analyst with the steel trading platform Xiben New Line E-Commerce in Shanghai.

     Qiu expected average crude steel output to fall below 2.3 million tonnes in November as 28 cities will fully implement output curbs between mid-November and mid-March amid the government's push to reduce smog.

    The capacity cut and output curbs driven by the environmental crackdown have boosted Chinese steel prices  SRBcv1 , which have risen 46 percent so far this year. 

    China has met its target for cutting steel capacity by 50 million tonnes this year. Total steel output in the first 10 months rose 6.1 percent to 709.5 million tonnes, data showed.

 

Edited by SHMET