Chinese Steel Update
A fire has broken out at the largest blast furnace at Benxi Iron & Steel’s operations in Northeastern China, the furnace produces around 9-10k tonnes of steel per day, according to media reports.
Daily crude steel output at China Iron and Steel Association member mills surged to a record 1.92 Mt in the period 11-21 August, up from 1.87 Mt/day in the preceding 10 days, according to data from the industry association reported by U-metal. Chinese mills have been encouraged to lift output by surging steel prices (see overleaf). Even before the latest price rises, combined profits at the 32 listed steel companies reached 22.0 billion yuan ($3.3 billion) in the 1h17, according to data compiled by IHS Energy. This was up almost four-fold.
Meanwhile, compliance inspections are due to start in the 28 major Chinese cities required to cut industrial activity over the winter months in a bid to combat air pollution.