NEWS
IRON and STEEL   Sailing, Ports & Shipping   Rail & Railways  

China's steel output slows ahead of winter curbs

China's crude steel output in October slipped to its lowest level since March at 81.52mn t, as narrowing profit margins slowed production slightly.

Daily crude steel output in October was at 2.63mn t compared with 2.76mn t in September, according to calculations based on national bureau of statistics data. Monthly output in October was at 81.52mn t, down by 1.51pc from the previous month and 0.6pc a year earlier.

Crude steel output fell at a slower pace than pig iron output, indicating an increase in scrap use for steel production. Pig iron output in October fell by 2.7pc from the previous year at 65.58mn t.

Crude steel output during January-October was higher by 5.4pc at 675.18mn t.

Steel output may slow further in November and December, at least on a sequential basis, as demand typically slows in the winter months while production restrictions will be imposed across China to reduce emissions and smog in cities.

The main steel-producing cities have not yet announced the extent of steel and sintering production cuts, which will provide clarity on how much production could fall in the winter months. The 2018-19 winter season's crude steel production was around 42mn t higher than in the 2017-18 winter because of looser restrictions in the key producing cities, such as Tangshan.

Real estate growth stays brisk

Demand from the real estate sector remains robust, with property investment on track to grow by over 10pc this year and outstripping a 9.5pc growth in 2018. January-October real estate investment grew by 10.3pc from a year earlier, with the trend of slowing growth remaining intact since hitting the year's high of 11.9pc during January-April.

New project start-ups in area terms grew at a fast rate of 10pc during January-October. Property sales growth in area terms grew by 0.1pc, although it was faster at 7.3pc in yuan terms, indicating continued rise in commercial real estate values. Real estate inventories fell by 6.6pc in area terms.

Infrastructure sector growth grew by 4.2pc during January-October, down from 4.5pc for January-September. An expected rebound in this year's fourth quarter for infrastructure projects has not materialised yet, despite Beijing substantially increasing funding for such projects through the issuing of special bonds to provinces. Railway transport investment, a key source of steel demand, grew by 5.9pc, down by 3.9 percentage points from January-September.

Industrial output growth slowed sharply in October at 4.7pc from a year previously from 5.8pc in September. But the auto sector — a key consumer of flat steel products — grew by 4.9pc, while the rail, shipbuilding, aerospace and equipment sectors grew by 3pc. A deceleration in auto output has pressured prices of hot-rolled coil for most of the year, so continued output gains will support prices in the short term.

News No: 7463
Date: 2019/11/14 - 19:40
News Source: Argus Media

China  steel  shipbuilding  Industrial  Railway 

Comments:

Leave a Comment:

   
   
   
 

Sublance systems for Tangshan Reafon and Hegang Laoting

Danieli Corus has signed two contracts for total four sublance systems to be installed in China.
 

Rolling Mill Expansion at Steel Dynamics, USA

New billet welder and spooler line are producing spooled coils up to 5 tons, in endless mode, at Steel Dynamics, Columbia City, Indiana, USA.
 

Danieli to modernize the Algoma Steel Plate Mill in Ontario

Danieli, along with Danieli Automation and Danieli Taranis, are the supplier team chosen for a complete upgrade of the 166-in. wide plate mill of Algoma Steel in Sault Ste. Maire (ON), Canada.
 

Danieli to modernize the Algoma Steel Plate Mill in Ontario

The four-strand caster supplied by Danieli in 2007 to Ascoval Saint Saulve, France, for the production of 180 to 325 mm rounds, will be revamped by Danieli.
 

Teck signs $95 million shipping deal, stock jumps

Teck Resources (TSX, NYSE: TECK) announced Wednesday that the company has signed a long-term rail agreement with CN (TSX: CNR) (NYSE: CNI) for the shipping of steelmaking coal from Teck’s four British Columbia operations between Kamloops and Neptune Terminals, as well as other west coast ports.
 

Copper primed for a pop if US-China trade war is resolved

Low inventories across the copper supply chain mean that any resolution to the U.S.-China trade war could trigger a snap rally in prices as consumers rush to restock, market participants said on Tuesday.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners