China's Steel Production in Reverse

China's crude steel production experienced a significant decline in November. Official data shows that production in the world's largest steel manufacturer fell by 4.3 percent compared to October. This decline is attributed to falling steel margins and seasonally weakening demand in the steel industry. Last month, 78.4 million tons of crude steel were produced, down from 81.88 million tons in October. However, this represents a 2.5 percent increase compared to the previous year, according to data from the National Bureau of Statistics. On average, daily production in November was about 2.61 million tons, compared to 2.64 million tons in October. Within the month, about half of the steel mills still generated profits, whereas at the end of October it was about two-thirds, according to data from the consulting firm Mysteel. A further decline in production is expected for December, as some steel mills have started the annual maintenance of blast furnaces to address dwindling demand. Total production in the first eleven months of 2024 fell by 2.7 percent compared to the previous year to 929.19 million tons.