Q1 2011 saw continued growth in China’s steel production, along with fluctuating prices.
Data from the National Statistics Bureau indicate a total crude steel output of 169.91Mt in Q1, or an increase of 8.7%.
The average daily output of 1.888Mt reached a new record high, which, if sustained, would lead to an annual crude steel production of 689Mt.
The spikes in crude steel output in the first three months of the year is attributable to both the state’s loosening measures to reduce energy consumption and pollutant emission as of Q4, 2010, and the price hikes before the Chinese New Year holidays.
Eyeing a higher average profit margin of RMB300/t ($46/t), small steel mills were very much stimulated in their production activities.
Source China Metals e-mail chinametal@xinhua.org
