China’s Steel Production Declines in August
In August, China’s steel production experienced significant reductions, with the largest decreases seen in Hebei province, which reported an 18% drop. The National Bureau of Statistics (NBS) noted that the five leading provinces—Hebei, Jiangsu, Shandong, Liaoning, and Shanxi—collectively produced 40.3 million tons of steel, reflecting a 13% year-on-year decline and comprising 51.7% of the nation’s total output for the month.
Production by Region
Hebei’s output fell to 14.89 million tons, while Jiangsu’s decreased by 12% to 9.35 million tons. Shandong and Shanxi recorded similar declines of 12% and 13%, respectively, and Liaoning’s production edged down by 0.7% to 5.65 million tons.
National Decline and Contributing Factors
On a national level, steel production dropped by 10.4% compared to the same period last year, with the first eight months of 2024 showing a 3.3% overall decrease. Factors such as plummeting steel prices and weak demand contributed to this downturn. August saw Shanghai’s hot-rolled coil prices reach a seven-year low, prompting many steel mills to cut back production to manage their inventories ahead of new regulations.
Expectations for September
However, experts anticipate that steel mills will ramp up production in September as demand is projected to recover following August’s maintenance period.
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