Chinese Steel Output Sinks as Mills Adjust to Weaker Demand

ncqx3x3v1ud{0l)ey)7vb4qr_media_dl_1.png National Bureau of StatisticsArticle content(Bloomberg) — Chinese steel output fell in the first two months of the year as mills continued to rein in production to counter shrinking demand.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe world’s biggest steel industry churned out about 160 million tons in January-February, 3.6% less than last year, according to the statistics bureau on Monday. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe period is usually a quieter time for steelmakers because of the Lunar New Year holiday and pollution controls ahead of annual legislative meetings in Beijing in early March. This year, mills have been less willing to accumulate inventory to prepare for the much busier spring season because of concerns over the outlook, said Steven Yu, a researcher at consultancy Mysteel.Article contentArticle contentChina is building less as its economy matures, which has pushed the steel sector into structural decline — a trend worsened by the prolonged crisis in the property market. Exports, an important channel for soaking up the domestic surplus, are also in retreat after tougher licensing rules came into effect.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentSteel production last year dropped below 1 billion tons for the first time since 2019, although doubts have been raised over the accuracy of the official figures. The government, meanwhile, continues to badger the industry into reducing capacity, and has imposed tougher rules on adding new plants, but has so far stopped short of ordering the swingeing supply cuts needed to balance the market.Article contentThe statistics bureau aggregates output figures for January and February to smooth out distortions from shifts in the timing of the lunar holiday.Article contentOther notable data from Monday’s release:Article contentOil refiners, another industry in the government’s crosshairs, raised output by 2.9% over the first two months. The data for March will draw a lot more attention given the impact of the war in the Middle East on crude imports, and China’s measures to conserve fuel supplies.Aluminum production rose 3%, building on the record set last year, due to lofty prices. Disruptions to Middle Eastern supplies should keep momentum strong in March after margins rose to a record, according to Bloomberg Intelligence.Electricity output rose 4.1%, including a 3.3% increase in thermal power generation that reversed the declines seen at the end of last year. Coal output eased slightly.Oil and gas drillers continued to raise production as China bolsters domestic supply to guard against overseas disruptions.Article contentArticle contentOn the WireArticle contentChina’s main economic indicators fared better than forecast to start the year, in a sign that momentum was improving before the war in Iran roiled the outlook for global growth and inflation. China’s home price declines moderated in February, a sign that the property downturn may finally be reaching a bottom. Article contentChina’s biggest oil refiner Sinopec has trimmed run rates as the widening Middle East war and difficulties shipping through the Strait of Hormuz choke supplies of crude.Article contentDonald Trump said he could delay his planned summit with Chinese President Xi Jinping if Beijing doesn’t help unblock the Strait of Hormuz, the Financial Times reported from an interview with the US president. Chicago soybean futures slumped.Article contentChinese negotiators showed an openness to making additional purchases of US agricultural products — including poultry, beef and non-soybean row crops — during the first day of bilateral trade talks in Paris, Reuters reported. Article contentChina’s long-running effort to build out its energy sources is getting fresh momentum from the war in the Middle East, reinforcing a strategy that’s sent grid operators on a bond-selling binge.

State Grid Corp. of China said it’s accelerating investment in power grids as Beijing pushes to stabilize growth and expand infrastructure spending.Trending Bank of Canada more likely to cut than hike after 'brutal' jobs report, say economists Economy Canadians’ average wealth hit $1.07 million, but what’s driving net worth depends on your age, province and bracket Wealth This TSX stock has 30% upside on the company's $11 billion project backlog, analyst says Investor Posthaste: Oil supply shock could force the Bank of Canada's hand yet News Garry Marr: The pros and cons of doling out inheritance with a warm hand Family Finance Article contentA metal used in weapons and semiconductors is finding itself the subject of geopolitical tensions as Chinese export limits and rising military demand squeeze supplies, sending prices to record highs.Article contentAn Energy Shock Lesson From China’s Dash for Gas: David FicklingArticle contentThis Week’s DiaryArticle content(All times Beijing)Article contentMonday, March 16:Article contentChina’s Vice Premier He Lifeng meets in Paris with US Treasury Secretary Scott Bessent for trade and economic dialogChina’s home prices in Feb., 09:30China’s Jan.-Feb. industrial output, including steel & aluminum; coal, gas & power generation; and crude oil & refining, 10:00 Retail sales, fixed assets investment, property investment, residential sales, jobless rateMysteel’s Lithium Industry Conference in Changsha, day 1Article contentTuesday, March 17:Article contentMysteel’s Lithium Industry Conference in Changsha, day 2Article contentWednesday, March 18:Article contentChina’s Jan.-Feb. output data for base metals and oil productsChina’s 2nd batch of Jan.-Feb. trade data Grains, sugar, cotton, palm oil, pork & beef importsOil products imports & exports breakdown; LNG & pipeline gas importsBauxite, steel and aluminum imports; rare-earth product, alumina and copper exportsCCTD’s weekly online briefing on coal markets, 15:00Mysteel’s International Iron Ore Market Seminar in Qingdao, day 1EARNINGS: CR Power, Power Assets, CK InfraArticle contentArticle contentThursday, March 19:Article contentMysteel’s International Iron Ore Market Seminar in Qingdao, day 2EARNINGS: Cosco HoldingsArticle contentFriday, March 20:Article contentChina sets monthly Loan Prime Rates, 09:00China’s 3rd batch of Jan.-Feb. trade data, including country breakdowns for energy and commoditiesChina’s weekly iron ore port stockpilesSHFE’s weekly commodities inventory, ~15:30Mysteel’s International Iron Ore Market Seminar in Qingdao, day 3EARNINGS: Hongqiao, Zijin Mining, Zijin Gold, HK & China GasArticle content—With assistance from Kathy Chen, Winnie Zhu, Sarah Chen and Dan Murtaugh.Article content(Updates with chart, and additional commodities from seventh paragraph)Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Bank of Canada more likely to cut than hike after 'brutal' jobs report, say economists Economy Canadians’ average wealth hit $1.07 million, but what’s driving net worth depends on your age, province and bracket Wealth This TSX stock has 30% upside on the company's $11 billion project backlog, analyst says Investor Posthaste: Oil supply shock could force the Bank of Canada's hand yet News Garry Marr: The pros and cons of doling out inheritance with a warm hand Family Finance