October sees 3.7% drop in China's steel production

Chinese steel companies took measures to cut steel production by 3.7% in October, amounting to 79.09 million tons compared to the previous month. This reduction is part of a trend, with October 2023 steel production down by 1.8% compared to the same period last year. The decline in production for the fourth consecutive month is attributed to steel mills implementing maintenance measures due to decreasing profitability and unmet demand expectations during the peak consumption season.

In a broader context, China recorded a notable 34.8% increase in metal product exports during January-October 2023 compared to the same period in 2022, totaling 74.73 million tons. Conversely, steel imports decreased by 30.1% year-on-year, amounting to 6.37 million tons. These figures highlight the evolving dynamics in China's steel industry, balancing domestic production adjustments with substantial shifts in international trade patterns.