Chinese Crude Steel Output Up by 3% in Sep'16

As per latest custom data released by Chinese Government, country's crude steel output has registered an increase of 3% in Sep'16 against corresponding month of previous year.The same stood at 68.17 MnT in Sep'16 against 66.12 MnT in Sep'15.

However, on M-o-M basis, China's crude steel production registered a fall of 0.58% to 68.17 MnT in Sep'16 to 68.57 MnT in Aug'16.

In first nine months of 2016, country's crude steel output is recorded at 603.78 MnT up by 0.4% against corresponding period of last year.

After reporting crude steel production in the year 2015, the Chinese government promised to curb its overcapacity by 45 MnT in current year and by 100-150 MnT in next five years.

However, this increase in country's crude steel production indicates China's aberration from its promised path to curb steel overcapacity.

In order to improve steel demand in the country, policy makers announced stimulus packages, leading to increase in its infrastructure spending. This led to rise in country's steel prices and profitability for steel manufacturers in return.

As per the market reports, steel output in China is likely to remain high for October month also as this is the peak season for steel consumption. However, after October winter season sets in and the output is anticipated to fall by considerable quantity.