BEIJING: China’s November steel output fell 6.5% from the previous month, official data showed on Thursday, as some steelmakers were forced to cut production to meet capacity control targets.
The world’s top steelmaking country produced 74.54 million tonnes of the metal last month, according to data from the National Bureau of Statistics, down from 79.76 million tonnes in October.
Production was up 7.3% compared with the same month a year ago, however. Output in November 2021 was at a multi-year low of 69.31 million tonnes because of major power shortages and curbs on polluting industries. November’s average daily steel output was 2.49 million tonnes, according to Reuters calculations, the lowest in a year.
China’s ailing property market has reduced demand for steel while steelmakers in Shanxi and Jiangsu provinces also had to lower production last month to meet capacity control targets, an iron ore trader said ahead of the data release.
Imported iron ore stocks at Chinese ports rose during November, reaching 138 million tonnes on Nov. 25 before starting to fall, SteelHome consultancy data showed. Total steel production from January to November came to 935.11 million tonnes, down 1.4% on the same period last year, the data showed. That compares with a 2.2% year-on-year contraction in January-October.
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