China's crude steel output in October fell by 3.8% year-on-year

The World Steel Association released a report on November 19th that global crude steel production increased by 2.4% year-on-year in October, while China's crude steel output fell by 3.8% year-on-year.

According to the report of the International Steel Association, global crude steel production in October was about 118 million tons, compared with about 115 million tons in the same period of last year, so it increased by 2.4% year-on-year, but China's crude steel output fell 3.8% year-on-year to 50.3 million tons.

In October, China's crude steel output fell against the market, and the current state's efforts to further increase energy conservation and emission reduction were related to the implementation of strict power-limiting measures in some provinces and cities. Since the second half of the third quarter, several provinces such as Hebei and Zhejiang have started to cut power to high-energy industries such as steel, and have reduced project starts.

Some analysts believe that there is only one and a half months left to achieve the goal of reducing energy consumption per unit of GDP by 20% in the “Eleventh Five-Year Plan”. The completion of the energy-saving targets for January-September 2010 announced by the National Development and Reform Commission shows that despite Jiangsu, Henan and Guizhou. The “red alarm” with Shaanxi and other provinces has been abolished, but the energy conservation and emission reduction situation in some areas is still severe, and the steel supply in Hebei province is still difficult to fully normalize. "It can be seen that the impact of energy conservation and emission reduction is still continuing, which is also a strong support for the continued firm steel prices.

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