The majority of market participants anticipated an increase in steel production in April compared to the previous month. This was driven by an uptick in demand and profitability for steelmakers. The average daily production for the month was 2.86 million tons, while March recorded 2.85 million tons and April last year recorded 3.09 million tons.
Reporters anticipate that steel production in China will improve in May due to an improved demand and consumption outlook.
Given that total production in the first four months has already decreased significantly, it is anticipated that this year's annual production will not exceed the level of 2023, even without the production restrictions across the country.
In contrast to last year, when Chinese authorities did not impose restrictions on steel production in line with their ambitions to reduce carbon dioxide emissions, this year has seen a boost in output and incomes for local steelmakers. In 2023, China produced 1.019 billion tons of steel, representing a 0.6 percent increase from 2022. Consequently, the downward trend in the steel industry of this country has ceased after two consecutive years of production reduction. China's steel exports reached 90.3 million tons in 2023, representing a 36.2% increase year-on-year. The import of steel reached 7.64 million tons, representing a 27.6% decrease compared to the previous year. The import of iron ore reached 1.179 billion tons per year, representing a 6.6% increase year-on-year.
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