From January to February 2023, steel firms’ output in China rose by 5.6% compared to the same period in 2022 to reach 168.7 million tonnes, according to data from China’s National Bureau of Statistics (NBS).
According to the world steel organization “Worldsteel”, in January 2023, China produced 79.5 million tonnes of steel, which is 2.3% more than in January 2022. Production in February was about 89 million tonnes.
Chinese steelmakers are ramping up steel production as they expect increased demand for the products in March when the construction season begins. At the same time, the index was not affected by the halt in production amid the winter holidays.
The average daily production from January to February 2023 was about 2.86 million tonnes of steel, an increase of 13.8% compared to the average daily rate in December 2022 and a decrease of 6.8% compared to the same period last year.
As of February 24, 2023, the utilization level of blast furnace capacity in China was 80.98%, up by 5.77% compared to 75.21% at the end of December 2022.
At the end of 2022, China introduced a series of actions to the country’s economy, especially in the real estate market, which was restricted by strict measures to contain the Coronavirus for most of 2022.
According to analysts, in March 2023, China’s steel production volume will continue to grow, as the peak of the country’s construction season will witness a rise in demand for finished products.
Although Beijing has not given a clear answer as to whether it will pursue a policy of zero control of the disease, China’s annual steel production is expected to be the same in 2022 or will rise slightly.
In 2022, China’s steel production declined by 2.2% compared to 2021, reaching 1.01 billion tonnes, due to the slowdown in the economy and the decline in the real estate market.