In the first eight months of 2024, China's crude steel production reached 691.4 million tons, decreased 3.3% from the same period last year. On a daily basis, production in August averaged 2.51 million tons, decreased 6.1% from the previous month and the lowest daily production rate so far this year.
The August decrease was primarily attributed to weak market conditions, with many domestic steel mills cutting production in response to weak demand. Steel consumption was adversely affected by unfavorable weather conditions, including high temperatures and heavy rains in much of the country.
Data showed a significant drop in capacity utilization among steel mills. By the end of August, the capacity utilization rate at 247 blast furnace-operated mills decreased 5.91 percentage points from the previous month to 82.96%. The utilization rate at plants using electric arc furnaces decreased by 11.42 percentage points to just 30.53%.
The reduced production coincided with a drop in finished steel prices. By the end of August, the national price for rebar decreased to 3,337 yuan (USD 470) per ton, decreased 44 yuan from July. Sales of structural steel averaged 110,898 tons per day in August, decreased 5,597 tons from the previous month. China's finished steel production also decreased in August, down 6.5% on annual basis to 110.9 million tons. However, total finished steel production in the first eight months of 2024 reached 925.7 million tons, increased slightly by 0.4% from last year.
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