STEEL supply in China, the world’s top consumer and producer, will need to be adjusted in the coming months to match a seasonal drop in demand, industry officials said, also noting that orders from exporters this quarter have fallen.

Chinese steel consumption fell 1.5% in the first three quarters of 2023 compared with a year ago, according to data from the China Iron and Steel Association (CISA).

Output in the same period rose 1.7%, separate data showed.

China has capped growth in its steel production for the last two years to curb carbon emissions, but not issued a similar mandate so far this year.

Asked if output this year would be kept at the same as last year’s level, Shi Hongwei, CISA’s deputy secetary general, told reporters that output will need to be adjusted.

“Steel demand will typically contract in winter. In this case, adjustment is needed in the supply side to achieve a balance,” he said.

China’s steel supply and demand in the fourth quarter is set to fall, CISA officials added, noting that output could be restricted due to environmental concerns. (SD-Agencies)