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China April steel output hits record, second month to push peak higher - stats bureau

Reuters  |  BEIJING 

(Reuters) - produced a record volume of in April, breaking the previous highest peak set in March, data showed, stoking worries about a growing glut of metal even as the said most of this year's targeted capacity cuts have already been

Chinese steelmakers churned out a highest-ever 72.78 million tonnes in April, up 4.9 percent, the National Statistics Bureau (NBS) data showed on Monday, surpassing March's monthly record of 72 million tonnes as mills in the world's top producer rushed to profit from rising prices even as demand remains flat.

In a briefing after the data release, an NBS spokesman said the nation had already 63.4 percent of this year's targeted cuts for and 46 percent of coal cuts.

The ramp-up in underscores the challenge for the as it aims to slash 50 million tonnes of low-grade outdated capacity this year, on top of the 65 million removed last year. The is targeting rebar, used in construction, in particular.

But many of the plants that have been closed in recent years were already idled and from still-open plants has continued to rise.

"Driven by high profits, companies are raising their capacity, by using high-quality iron ore and increasing their use of scrap," said Bai Jing, analyst at Galaxy Futures.

"Production might be at record high, but the production capacity is being reduced."

In the first four months, production totalled 273.9 million tonnes, up 4.6 percent from the same period a year earlier, the data showed.

(Reporting by Josephine Mason; Additional reporting by Hallie Gu; Editing by Richard Pullin and Tom Hogue)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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China April steel output hits record, second month to push peak higher - stats bureau

BEIJING (Reuters) - China produced a record volume of steel in April, breaking the previous highest peak set in March, data showed, stoking worries about a growing glut of metal even as the government said most of this year's targeted capacity cuts have already been met.

(Reuters) - produced a record volume of in April, breaking the previous highest peak set in March, data showed, stoking worries about a growing glut of metal even as the said most of this year's targeted capacity cuts have already been

Chinese steelmakers churned out a highest-ever 72.78 million tonnes in April, up 4.9 percent, the National Statistics Bureau (NBS) data showed on Monday, surpassing March's monthly record of 72 million tonnes as mills in the world's top producer rushed to profit from rising prices even as demand remains flat.

In a briefing after the data release, an NBS spokesman said the nation had already 63.4 percent of this year's targeted cuts for and 46 percent of coal cuts.

The ramp-up in underscores the challenge for the as it aims to slash 50 million tonnes of low-grade outdated capacity this year, on top of the 65 million removed last year. The is targeting rebar, used in construction, in particular.

But many of the plants that have been closed in recent years were already idled and from still-open plants has continued to rise.

"Driven by high profits, companies are raising their capacity, by using high-quality iron ore and increasing their use of scrap," said Bai Jing, analyst at Galaxy Futures.

"Production might be at record high, but the production capacity is being reduced."

In the first four months, production totalled 273.9 million tonnes, up 4.6 percent from the same period a year earlier, the data showed.

(Reporting by Josephine Mason; Additional reporting by Hallie Gu; Editing by Richard Pullin and Tom Hogue)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
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China April steel output hits record, second month to push peak higher - stats bureau

(Reuters) - produced a record volume of in April, breaking the previous highest peak set in March, data showed, stoking worries about a growing glut of metal even as the said most of this year's targeted capacity cuts have already been

Chinese steelmakers churned out a highest-ever 72.78 million tonnes in April, up 4.9 percent, the National Statistics Bureau (NBS) data showed on Monday, surpassing March's monthly record of 72 million tonnes as mills in the world's top producer rushed to profit from rising prices even as demand remains flat.

In a briefing after the data release, an NBS spokesman said the nation had already 63.4 percent of this year's targeted cuts for and 46 percent of coal cuts.

The ramp-up in underscores the challenge for the as it aims to slash 50 million tonnes of low-grade outdated capacity this year, on top of the 65 million removed last year. The is targeting rebar, used in construction, in particular.

But many of the plants that have been closed in recent years were already idled and from still-open plants has continued to rise.

"Driven by high profits, companies are raising their capacity, by using high-quality iron ore and increasing their use of scrap," said Bai Jing, analyst at Galaxy Futures.

"Production might be at record high, but the production capacity is being reduced."

In the first four months, production totalled 273.9 million tonnes, up 4.6 percent from the same period a year earlier, the data showed.

(Reporting by Josephine Mason; Additional reporting by Hallie Gu; Editing by Richard Pullin and Tom Hogue)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22