Monday 15 July 2019 2:43 pm

Chinese steel producers set new record in June

Chinese steel mills were busy last month, hitting an all-time daily production record, new figures out today show.

Output hit 87.53m tonnes of crude steel in June, data from the National Bureau of Statistics show.

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The figure is a small decrease in overall monthly production, but a boost to daily output, which hit 2.92m tonnes, from 2.87m in May.

It comes as the booming Chinese construction sector is demanding ever more steel.

However regulation to prevent smog in the country is also hitting the coal-reliant industry.

New rules in Hebei province, in the country’s north, were brought forward in June. The province accounts for a quarter of China’s steel output. Curbs on production are expected to continue until August in some parts.

Analysts expect they will reduce the operations of blast furnaces by about 40 per cent.

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“Nearly 98 per cent of the increase in steel production in the first five months flew into the domestic market,” said He Wenbo, the chair of China’s steel association.

“Steel output is not determined by producers, but downstream users in the market.”

Main image credit: Getty