CHINA has shrugged off suggestions of a plateauing of demand for steel, analysts have reported.
According to a report prepared for Banchero Costa, Chinese steel production reached monthly record highs over May to August 2018, bringing total steel output in the first eight months of 2018 to 610.4m tonnes.
This was described as “a strong increase” of 7.5% year-on-year.
Earlier reports had suggested China, which accounts for around 52% of global crude steel output, would stay flat year-on-year, as the country’s GDP growth and infrastructure investments were forecast to slow with a government’s crackdown on financial risks.
According to BC, the International Monetary Fund expected China’s GDP growth to stand at 6.6% in 2018, slowing from 6.9% in 2017.
Banchero Costa noted seasonal demand increasing during the northern summer, with steel mills ramping up output to cash in on strong margins, even as the Chinese steel industry faced “tough environmental regulations, tighter credit, and capacity curbs”.