Chinese steel production likeley will break the 900 million tonnes mark in 2019
by David Fleschen
The Chinese economy has been cooling down for several years. It is currently receiving additional headwind from the trade dispute with the USA. With 6.5% expected by the Germany analyst institute “Commerzbank Commodity Research”, GDP is likely to grow as little this year as it did last in 1990. However, steel production was still virtually at full steam in October. According to NBS data, it has risen to a record high of 82.55 million tonnes, an increase of 9.1% over the previous year. On a daily basis, it was only marginally below the all-time high reached a month earlier. China has now produced more than 80 million tons of steel per month for six consecutive months. Even if the winter cuts start now and production is being cut back, Chinese steel production is about to break the 900 million tonnes mark in 2019, regarding the full year. China is thus making a significant contribution to ensuring that global steel production in 2018 will reach a record high. The MEPS research institute sets this at 1.79 billion tons (+ 4.6% yoy). However, in 2019 it should barely rise.
souce: Commerzbank Commodity Research, photo: fotoalia