China's steel production sector gained significant momentum in May. According to the latest data from the National Bureau of Statistics, crude steel production in the country's top 10 steel-producing states and autonomous regions increased by 6.16% to 67.54 million tons. China produced a total of 92.9 million tons in May 2024, an increase of 2.7% compared to May 2023. Improvements in economic policies and high levels of raw material prices were effective in this increase.
The recovery in steel prices has strengthened manufacturers' profit margins and encouraged many factories to increase production. The 247 blast furnace facilities monitored increased their profit rates by 19.91% compared to last year, reaching 52.81%.
Fujian province, in particular, recorded a huge increase of 40.08% in crude steel production last month. With the commissioning of Sansteel Minguang's new blast furnace facility, the production volume in this province reached 3.53 million tons.
Southern China's Guangdong province also produced a strong production of 3.98 million tons, an increase of 29.22% in the same period. The commissioning of new projects by local steel producers played a decisive role in this increase. For example, Guangdong Jinshenglan Metallurgy Technology's commissioning of its third production line has increased its production capacity in the region.
In the January-May period, total crude steel production in China's top 10 steel-producing provinces and autonomous regions increased by 0.08%, reaching 318.38 million tons. A decrease was observed in steel production in some regions.
China's steel industry follows a fluctuating course shaped by regional dynamics and global market conditions. These variations are likely to play a critical role in determining the future direction of the industry.
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