Due to an overcapacity status investment in China’s steel production suffered a severe m-o-m fall in July, while mining investment experienced some growth.

According to China’s National Statistics Bureau, urban FAI in the ferrous sector (mining plus smelting and rolling) in the Jan-July period amounted to RMB 227bn (US$33.9bn), up 4.7% y-o-y, in which investment in metal production and rolling was RMB 175.3bn ($26.2bn) up 1.6% y-o-y.

However, investment in July in crude steel plant was down 32.8% y-o-y to RMB 21.4bn ($3.19bn) and 52.4% down m-o-m.

By region, Hebei still ranked No1 producer while Liaoning followed. But Tianjin and Jiangsu saw the most rapid growth in FAI in the steel sector as a result of massive projects in both areas.

Source: China Metals e-mail chinametal@xinhua.org