China's steel production declines

Since August, with the continuous repair of profits, the production enthusiasm of steel plants has been significantly improved, and the steel output has also started to pick up at an accelerated pace. The crude steel output in the first ten days of September has been "regular" for the year on a year-on-year basis. However, since October, the crude steel output has declined and the blast furnace operation rate has continued to decline.

According to the data of China Iron and Steel Industry Association, in the first ten days of October, the key statistics were that iron and steel enterprises produced 21077500 tons of crude steel and 20171200 tons of steel. The daily output of crude steel is 2107700 tons, down 1.11% month on month; The daily output of steel was 2017100 tons, down 9.19% month on month.

According to the latest survey data of the national blast furnace operation rate, on October 13, the average blast furnace operation rate of 201 iron and steel enterprises nationwide was 79%, 1.5 percentage points lower than the previous week. At present, it has been declining for two consecutive weeks, and the reduction rate is accelerating.

Why does steel output fall back? Can it continue to decline in the later period?
A senior analyst at an iron and steel network said that the current decline in steel output was not too large, which was within the normal range of fluctuations. In the later period, attention should be paid to the trend of steel price and steel plant profits. If both are relatively low, the output will decline. In addition, we also need to pay attention to policy changes. One is the strength of crude steel reduction policy and the specific situation of production restriction in autumn and winter.