Hebei will remain China’s leading steel province in 2020

According to the latest data, most of the top ten steel provinces in China on an annualized basis increased the production of crude steel in 2020, and Hebei province in northern China retained its first place, although its contribution to the total production in the country decreased by 0 , 5 percent.

In 2020, crude steel production in Hebei, at almost 250 million tons, reached 23.7% of total production in China, up from 24.2% in 2019, and actual tonnage increased by 8.2 million tons, or by 3.4%, compared to the same period last year, down from 5.2%. % yoy growth in steel production in the country.

Hebei’s result was driven by a mixed environment of steel production growth across the country, especially the acceleration from the second quarter of 2020 and Beijing’s continued close surveillance of Hebei with its geographic proximity to the capital and severe local air pollution.

East China’s Jiangsu province also maintained its second place in the rankings, although its steel production increased by only 911,000 tons, or 0.8% year on year, to 121.1 million tons in 2020, and Shandong province, also in East China, overtook Liaoning in northeast China, becoming the third largest steel province, and its production volumes grew the most by 16.4 million tons or 25.7% year on year to 79.9 million tons in 2020.

“Last year was a pivotal year, with quiet and subtle changes, when some of the Chinese steel mills that operated at low capacity utilization during 2018-2019 were acquired by large mills, allowing them to ramp up production,” he said. Shanghai Market Observer.

In addition, Shandong Iron and Steel Group’s Rizhao Steel also boosted production last year, helping to boost steel production in Shandong, and the new steel plant still has room to further increase production.

Steel demand in China for 2020 has been exceptionally strong since the second quarter thanks to a series of economic stimuli undertaken by Beijing, which also boosted production, market sources agreed.

Among the top ten provinces, Hubei Province in central China that has been hit hardest by the outbreak of the pandemic was, unsurprisingly, the only one where steel production declined 1.5% to 35.6 million tonnes.

Overall, the top ten steelmaking provinces and regions accounted for 72.8% of the country’s total steel production last year, up 0.6 percentage points from 2019.

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