Crude Steel Output in China Set to Hit the Lowest on Record
Published By : 21 Jan 2015 | Published By : QYRESEARCH
According to new data released by the National Statistics Bureau, China’s production in crude steel - a positive indicator to its industrial demand declined to its slowest pace of growth as recorded last year.
China produces half the world’s steel. The country’s vast steel complex is renowned across the globe and recently the output of the metal merely increased by 0.9 percent from 2013 to around 822.7 million metric tons. This value has fallen to Beijing’s drive for a cleaner and consumption-led energy economy.
This growth and pace was far slower than that of China’s total economic growth. Last year the growth slipped to 7.4 percent becoming nation’s weakest level in 24 years. The steel slowdown was highly expected by leading analysts and officials.
The president of the state supported the China Iron and Steel Association and said as China’s economy enters a normal state, this also stirs up immense pressures to the steel industry.
China generally exports around 5 percent of its steel output to the world. However, according to The Wall Street Journal’s official data, the apparent steel demand increased by 2.6 percent last year from 2013. This was offset by a pool of cheap steel exports. In 2013, this value reached 5.8 percent.
Nevertheless, last year China only exported 8.3 percent of its total steel production in international markets in the pursuit of urbanizing markets in Southeast Asia and different sections of the US energy industry.
Many other indicators in the industrial production also showcased a sharp decline last year. The power output increased by 3.2 percent to 5.46 trillion kilowatt-hours which has been the slowest in more than a decade, and less than half of the 7.6 percent as seen in 2013.
In addition, China’s oil processing - crude oil refinery also increased by 5.3 percent last year as compared to 3.3 percent in 2013. According to the analysts this was due to the sharp decline in falling crude import prices observed towards the end of the year.