Chinese crude steel production rose by around 9.1pc to 93.36mn mt in July from the same month last year.
The average daily output in July recorded at 3.01mn mt, according to the China Iron and Steel Association (CISA) data released on Monday. The country also recorded an increase in steel imports even as exports plummeted reflecting a dearth of domestic steel supply compared with demand, despite the increase in output.
Davis Index had reported earlier from preliminary statistics that China’s imports of steel materials in July tripled to 2.61mn mt from a year ago as demand outpaced supply.
The output of pig iron rose by 8.8pc from July 2019 to 78.18mn mt last month, while that of rolled steel surged by roughly 9.9pc to 116.89mn mt during the same period under comparison.
In June 2020, the output in the world’s top steel-producing nation hit 91.58mn mt, with an average daily output of 3.05mn mt.
Apart from the Chinese government injecting heavy financial aid into the steel industry, the July production data from CISA reflected a rapid economic recovery that saw higher demand for steel amid a flurry of infrastructure projects. The demand for steel in the downstream industry could grow further, as growth-based policies consolidate the country’s economic recovery, according to CISA.
China’s largest steelmaker China Baowu Steel Group on Friday announced its acquisition of a 51pc stake in Taiyuan Iron & Steel (Group) Co Ltd as part of its efforts to become a global steel leader with an annual output of 100mn mt, which could add to the country’s domestic steel supply in the medium term.