China's steel production continues its downward trend with the support of production cut measures. The brake applied by the Chinese Government in May continues to slow down the production in the Chinese steel industry. China's crude steel production, which reached its peak with 99.5 million tons in May, displayed a gradual downward trend with the support of the measures taken in the following months and decreased to 83.24 million tons in August with a decrease of 16.3% compared to its level in May.
China's production decreased by 12.2% compared to August last year and by 4.1% compared to July 2021. In the January-August period, however, China's total crude steel production increased by 5.3% to 733 million tons. The aforementioned data reveal a rapid slowdown in production growth in recent months, compared to previous periods.
China's total crude steel production grew by 15.6% in the first quarter of the year, and by 11.8% in the first half.
Production for the target should not exceed 83 million tons per month in the next 4 months
As a result of the production cut policy, China aims to keep the crude steel production in 2021 at the level of 2020. In order for China to keep its crude steel production in 2021 below the level of 1 billion 65 million tons in 2020, it needs to produce less than 332 million tons of steel in total, with a monthly average of 83 million tons in September, October, November and December. In order for the Chinese Government to achieve its production cut target, China, which reached this level in August, must realize production that does not exceed the same level in the next 4 months.
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