SMM: global crude steel production increased slightly in August, as the increase in production in China, the number one producer, offset the decline in production triggered by the novel coronavirus epidemic in most other countries, according to data released by the World Iron and Steel Association ((WorldSteelAssociation)) on Thursday.
But China's production growth is expected to slow in the coming months, although the government will continue to offer stimulus programs, one analyst warned.
China is the world's number one steel producer and consumer.
SamuelBurman, commodity economist at Capital Macro (CapitalEconomics), said: "while steel demand from China's infrastructure sector will remain strong in the coming months, we suspect that it will be partially offset by weak demand in the real estate sector."
Global steel production rose 0.6 per cent to 156.2 million tons in August, while Chinese production rose 8.4 per cent to 94.8 million tons, according to figures released by the World Iron and Steel Association on Thursday.
Outside China, steel projects are still struggling, with production in Japan plunging 20.6 per cent, Germany by 13.4 per cent and the US by 24.4 per cent.
"in fact, with the recent resumption of virus-related quarantine measures in Europe, India and other countries, steel demand could fall again, and steel production outside China may even fall further in the coming months," Burman added.