China crude Steel Output Increases by 4.9% in October

Chinese crude steel output increased by 4.9% to 50.3 million tonnes in October from September, according to Chinese government’s announcement. The output increased for the first time in 5 months though which hit below 50 million tonnes in September. Local small-middle steel makers have increased the output since mid September to prepare for the demand season before winter, according to Chinese concern source. On the other hand, iron ore import decreased in October. Some local governments are said to implement regulation of electric power supply again. Consequently, crude steel output may decrease in November.

The output decreased by 3.8% in October from a year earlier, which decreased for 3 consecutive months. The output increased by 10.7% to 525 million tonnes for January-October from the same period of last year, and is expected to increase by 11% to 630 million tonnes in 2010, which is expected to be over 600 million tonnes for the first time. The output increased by 1.6% to 1.623 million tonnes per day in October from September.

Chinese steel products output decreased by 0.2% to 65.29 million tonnes in October from September, which decreased for 2 consecutive months. The output increased by 17.2% to 664 million tonnes for January-October. The output is expected to increase to 797 million tonnes in 2010.

The iron ore import decreased by 13% to 45.72 million tonnes in October from September. Chinese steel makers are reducing the output due to weak demand more than electric power supply, according to Japanese integrated steel maker source.