STEEL producers in China ramped up output in March to the highest level since September, with mills in the world’s top market for the metal rushing to boost operations after winter restrictions to prevent smog were lifted in the middle of the month.

China last month churned out a total of 73.98 million tons of steel, up 4.5 percent from same period in 2017, data from the National Bureau of Statistics showed yesterday.

Average daily steel output in March reached 2.39 million tons, the highest level since September and up 2.8 percent from combined January-February data, according to media records.

The data will stir worries about mounting oversupply as inventories of rebar used in construction hit their highest in years, dragging steel prices to their worst monthly performance since May 2016.

Some analysts were surprised by the rise given that winter curbs were in place until the middle of the month.

But they said the data illustrates the fast pace at which mills were ready to unleash capacity onto the market, taking advantage of robust prices and decent margins.

“Mills in most cities were ramping up output as soon as heating seasons finished in mid-March, although some cities prolonged the curbs,” said Richard Lu, analyst at CRU consultancy. (SD-Agencies)