CHINA’S steel output eased in August after hitting a record-high in July, crimped by tough production restrictions in major steelmaking regions as part of efforts to clear the country’s skies. The world’s biggest steelmaker churned out 80.33 million tons of crude steel last month, according to data from the National Bureau of Statistics on Friday. That’s down 1.1 percent from a record 81.24 million tons in July, but still up 7.7 percent from 74.59 million tons in the same month last year. Daily average output in August dipped from the previous month to 2.59 million tons, the lowest since April this year, according to calculations based on the official data. The city of Tangshan, China’s No. 1 steelmaking hub, ordered steel mills to cut output capacity by 30 percent to 50 percent over six weeks from July 20 to Aug. 31. Utilization rates at blast furnaces at steel mills across China fell to as low as 66.16 percent in mid-August, according to data compiled by Mysteel consultancy, a level not seen since early April. “Steel output may rise slightly from September as some mills have resumed after summer maintenance, but room for output growth will be limited,” said Zhao Yu, steel analyst at Huatai Futures. Last week, Tangshan extended summer output cuts across the steel, coke and power sectors into September. The city of Linfen, a major coke making region, also introduced production restrictions on heavy industry to reduce emissions. It has asked steel mills to halve their output capacity from early September to mid-November.(SD-Agencies) |