March 24, 2023 (MLN): Chinese steel output has increased by 6% YoY during January and February compared to the same period last year owing to the pent-up demand in China as the country emerges from years of strict Covid-19 controls, Vivek Dhar, Analyst at Commonwealth Bank of Australia stated.
According to Dhar, the strong performance of China's manufacturing sector indicates robust underlying demand at the beginning of the year. He further predicts that this pent-up demand will continue to drive China's steel output in the first half of 2023.
China and South Korea stand out as outliers among the world's largest steel producers, with production in other countries mostly weaker in recent times.
Overall, global crude steel output was down last month compared to the same period last year.
The increase in Chinese steel production is a significant development for the global steel industry, and its continuation could have far-reaching implications for steel prices and the wider manufacturing sector.
