China's Crude Steel Production Declines in November Due to Contracting Margins and Demand

In November, China's crude steel production decreased by 4.3% compared to October, due to narrowing margins and seasonally weakened downstream steel consumption. According to data from the National Bureau of Statistics (NBS), China's crude steel production fell from 81.88 million tons in October to 78.4 million tons last month. Calculations indicate that this suggests an average daily production of approximately 2.61 million tons, compared to 2.64 million tons in October and 2.54 million tons in November 2023. Analysts note that the primary reason for the drop in production in November compared to the previous month is the narrowing of steel margins due to declining seasonal demand and resilient iron ore prices. Data shows that last month’s production increased by 2.5% compared to the previous year. The bureau reported that production in the first 11 months of 2024 declined by 2.7% year-on-year to 929.19 million tons. Analysts expect China's total crude steel production in 2024 to decrease by around 2% compared to 2023.