China’s steel output at seasonal lowest since 2017

Doomed poor demand in the construction sector leading to low steel prices & production margins, the contraction of China’s steel output accelerated to -10% YoY in Aug’24 compared to -4% in the first eight months of 2024.

A chart showing the evolution of iron ore output in China's steel industry from January to December, comparing data from 2022, 2023, and 2024, with each year represented by different colors from the IG color palette. Additionally, a grey-shaded area represents the 5-year range of variation.

Market conditions encouraged Chinese steel mills undergo longer maintenance during the Summer. Paradoxically, steel output from electric-arc furnaces declined faster that from blast-furnaces, power consumption in China in Aug’24 rose +7.4% YoY to a new record thanks to air-con demand and industrial output rising +4.5% YoY.

If you would like to get more information on this topic and the impact on the freight market, please reach out to us on: [email protected].