While China’s industrial output recovered solidly in November, there’s a different story in steel output which fell to an eight-month low.
But the country remains on track to produce an impressive 980 million tonnes plus in 2019.
China’s National Bureau of Statistics (NBS) said crude steel output fell to 80.29 million tonnes in November from 81.52 million tonnes a month earlier.
From a year ago, crude steel output was up a solid 4.4% from that month’s 77.62 million tonnes – though it must be pointed out that November 2018 was a seen month low as pollution control curbs on steel production hit home. Those curbs were less onerous last month.
But output still remains well below the all-time peak of 89.091 million tonnes reached in May of this year – November’s figure is a fall of 10% from that peak, a substantial fall.
Besides steel, cement and pig iron production all rose from a year earlier in November, compared with a fall in the previous month. Output growth in steel, auto and telecommunications sectors accelerated from October, NBS data showed.
Crude steel output in the first 11 months of the year hit 899.51 million tonnes – still more than 7% ahead of last year. That puts it on track to reach around 980 million tonnes by the end of this month which would be more than 50 million tonnes ahead of 2018’s 928 million tonnes.
Elsewhere output last month showed the benefit of no holidays like November’s week-long stoppage at the start of the month.
In fact, output rose across a range of key industrial sectors – with larger increases in consumer electronic products (up 9.7% year on year) and cement (up 8.0% YoY). Electricity output rose 4.0% and motor vehicle production was up 3.7% YoY – the first year-on-year increase in motor vehicle production since mid-2018.
Manufacturing output rose 6.3% year on year, and mining output rose 5.7%. High-tech manufacturing saw an output increase of 8.9% last month.
