China has defied market projections by recording a 1.6% increase in crude steel output during the first two months of 2024 compared to the same period last year, as revealed by recent data. The world’s leading steel producer manufactured 167.96 million metric tons of crude steel in January and February, according to figures released by the National Bureau of Statistics (NBS). The combined data for these two months aims to mitigate the impact of the Lunar New Year holiday, which falls at varying times early in the year. This production level equates to an average daily output of approximately 2.8 million tons, reflecting a fluctuation from December 2023 and the corresponding period in 2023. While January saw a decline in ferrous metal output, the unexpected annual increase in steel production has drawn attention from industry analysts. Factors contributing to this rise include robust steel exports during the period, reaching a peak not seen since 2016, which may have bolstered utilization rates at certain facilities. Despite the positive figures, concerns loom over potential production cuts in March as some mills grapple with losses from costly inventories and softening prices amid subdued demand. A steelmaker in northern China highlighted challenges faced by certain steel stocks, emphasizing the industry’s current struggles amidst evolving market conditions.
China Surprises with 1.6% Rise in Jan-Feb Crude Steel Output Despite Market Expectations