As expected, crude steel production in China exceeded 1 billion tons by 2020, about 1.05 billion tons, or 5.2% more than last year, according to the latest report from the country’s National Bureau of Statistics (NBS ) dated January 18.
Annual growth was 3.1 percentage points lower than in 2019, as the fight against COVID-19 for most of the first quarter of 2020 affected steel production and demand to some extent, Mysteel Global notes.
However, crude steel production in China has shown growth since April over the same period last year, and the growth rate has accelerated in recent months, mainly due to a significant recovery in domestic demand from the second quarter of 2020 with the resumption of economic and industrial activity and investment from Beijing. into the infrastructure. as part of efforts to save the economy.
In December alone, China produced 91.3 million tonnes of crude steel, a 7.7% increase over the same period last year, while daily production also rose 0.7% month-on-month after declining from October-November. , calculated by Mysteel Global based on NBS data.
Production of finished steel for the whole of 2020 increased more significantly by 7.7% compared to the same period last year to 1.3 billion tons, and production in December alone reached 120.3 million tons, which is 12.8% more than with an increase in November by 10.8%. , according to NBS.
The strong domestic production of finished steel has matched the general enthusiasm of Chinese steelmakers to maintain high finished steel production most of the time last year, thanks to positive steel margins driven by strong domestic and international demand. Mysteel Global noted that in the half of 2020 about the ease of exposure to COVID-19.
Mysteel steel price estimates confirmed this rationale as the national price of 20mm HRB 400 rebar in China rose 696 yuan /t ($ 107.3 /t) year-on-year to a 25-month high of 4579 yuan /t December 22, and In 235, 4.75mm hot rolled coil (HRC) rose by 1,115 yuan per tonne to 4,994 yuan per tonne on the same day, a new high since Mysteel began evaluating the latter in July 2010 year, both of which include 13% VAT.
Strong demand also drove stocks of finished steel in China to “normal” levels before the pandemic by the end of 2020, and stocks of five major finished steel products, including rebar, wire rod, hot rolled coil, cold rolled coil and medium sheet. in commercial warehouses in 35 cities in China, for example, amounted to 8.4 million tons, or only 2% more than last year.
Chin’s steel exports were reportedly up from the previous month in the fourth month to December to 4.85 million tonnes, up 10.2% month-on-month or 3.5% up over the previous year.