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Steel output declines to 6-month low
By Richard Fu |
September 12, 2012, Wednesday
|
Print Edition
Print Edition
CHINA'S crude steel output fell to a six-month low in August as falling prices forced mills to cut production.
The output shed 1.7 percent from a year earlier to 58.7 million tons last month, the lowest since February, the National Bureau of Statistics data showed yesterday. That also marked a monthly fall of nearly 5 percent.
Domestic steel prices have been near the lowest level last week since the 2008 financial crisis, according to BOC International, as China's economic growth dipped to the slowest pace in three years.
As part of government efforts to boost economic growth, the National Development and Reform Commission last week approved 25 subway projects and other infrastructure works across the nation.
The projects would boost confidence in the steel market but as their construction period is long, the actual benefits on steel demand may take some time to emerge, BOC International analyst Le Yukun said in a note.
Demand this month may improve from August and July but oversupply will persist amid the economic slowdown and high output, which will keep prices weak, he added.
The output shed 1.7 percent from a year earlier to 58.7 million tons last month, the lowest since February, the National Bureau of Statistics data showed yesterday. That also marked a monthly fall of nearly 5 percent.
Domestic steel prices have been near the lowest level last week since the 2008 financial crisis, according to BOC International, as China's economic growth dipped to the slowest pace in three years.
As part of government efforts to boost economic growth, the National Development and Reform Commission last week approved 25 subway projects and other infrastructure works across the nation.
The projects would boost confidence in the steel market but as their construction period is long, the actual benefits on steel demand may take some time to emerge, BOC International analyst Le Yukun said in a note.
Demand this month may improve from August and July but oversupply will persist amid the economic slowdown and high output, which will keep prices weak, he added.
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