The National Bureau of Statistics has released its latest data showing China's crude steel production reached 850.73 million metric tons during January-October 2024, marking a 3% decrease compared to the same period last year. This decline represents a slight improvement from the 3.6% drop recorded in the first nine months, indicating a gradual stabilization in production levels.
October 2024 emerged as a particularly notable month, with crude steel production reaching 81.88 million metric tons, representing a 2.9% increase compared to October 2023. The daily production rate averaged 2.64 million metric tons, showing a robust 2.8% increase from September. This uptick in production can be attributed to steel manufacturers maintaining high output levels due to favorable profit margins on finished steel sales.
The operational landscape showed significant improvements across different production methods. Blast-furnace mills achieved an 88.4% capacity utilization rate in late October, marking a 2.79% increase from September. Even more impressive was the performance of electric arc furnace mills, which saw a substantial 9.64% increase in utilization rates, reaching 54.35%.
Trading activity in the physical market remained subdued, with daily trading volumes among 237 monitored trading houses averaging 121,307 metric tons per day, showing a slight decrease of 1,333 metric tons from September's figures. This trend highlights the ongoing disconnect between production levels and market demand.
The finished steel sector showed more positive results, with October production reaching 119.4 million metric tons, marking a 3.5% year-on-year increase. The cumulative production for the first ten months of 2024 totaled 1.16 billion metric tons, representing a modest 0.5% increase compared to the same period in 2023.
Pig iron production, an essential component of the steel manufacturing process, recorded 70.26 million metric tons in October, showing a 1.4% year-on-year increase. However, the January-October period saw total pig iron production decline by 4% to 715.11 million metric tons, reflecting the broader challenges facing China's steel industry in 2024.
