China Records Lowest July Crude Steel Production in 3 Years

Henan Steel Group Automotive Cold Rolled Steel Sheet Production Plant

[Asia Economy Reporter Ki-min Lee] China’s crude steel production in July fell by 6.4% compared to the same month last year, marking the lowest level in three years.

According to data released on the 16th by the National Bureau of Statistics of China, China’s crude steel production in July was 81.43 million tons.

Production of pig iron (70.49 million tons) and steel products (106.24 million tons) also decreased by 3.6% and 5.2%, respectively, compared to the same month last year.

The average daily production in July for crude steel, pig iron, and steel products fell by 13.1%, 11.3%, and 13.2%, respectively, compared to the previous month.

The cumulative production from January to July this year for crude steel (609.28 million tons), pig iron (510.9 million tons), and steel products (776.5 million tons) decreased by 6.4%, 4.5%, and 4.6%, respectively, compared to the same period last year.

China News Network reported that July’s crude steel production was the lowest in three years for the month of July. This is attributed to government controls on steel production to prevent environmental pollution, decreased demand due to the real estate market downturn, and steel companies adjusting production to dispose of inventory.

The Chinese real estate market, estimated to account for one-third of China’s steel demand, is in a prolonged slump due to continuous crackdowns on speculation and regulations by authorities.

With the resurgence of COVID-19 and the Chinese government’s renewed pandemic control measures, the economy remains in a recession, rendering various support measures ineffective.

This content was produced with the assistance of AI translation services.