According to data from the National Bureau of Statistics (NBS), this decrease in production occurred despite better margins and increased exports.
Analysts were expecting a y/y increase, citing higher exports, but the data came up short of those forecasts. According to customs data released last week, steel exports increased by 6.7% to 16.97 million tons in the first two months of the year. Experts pointed out that steel producers accelerated their shipments against the risk of global trade wars after the inauguration of US President Donald Trump in January, which was effective in the increase in exports.
According to calculations, average daily production in January and February was about 2.82 million tons, 0.7% higher than the 2.8 million tons of daily production in the same period last year.
On the other hand, China's January steel output decreased by 5.6% y/y to 81.9 million tons, according to a report released by the World Steel Association. Analysts expect steel production to increase again in March on the back of strong margins.
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