In May, China increased steel production to its record level in 12 months

In May 2022, Chinese steel companies produced 96.61 million tons of steel, reaching a record for the last 12 months. The figure is 3.5% lower than the record in the history of Chinese steel smelting in May 2021, but 4.1% more than in April, SteelOrbis reported with reference to the National Bureau of Statistics of China.

Finished steel production in China in May reached 122.61 million tons, down 2.3% compared to May 2021 and an increase 6.8% compared to April 2022. Pig iron production increased by 2% year on year, and 4.8% – monthly, to 80.49 million tons.

The average daily steel smelting in May reached 3.12 million tons, which is 0.8% more than in the previous month. China produced more steel only in April, May and June last year.

In January-May this year, Chinese steelmakers reduced steel smelting by 8.7% compared to the same period in 2021, to 435.02 million tons. Production of finished steel for 5 months amounted to 549.31 million tons, and pig iron – to 360.87 million tons, which is 5.1% and 5.9% less, respectively.

The decline in production was caused by the coronavirus pandemic and declining demand for products. At the same time in May, some recovery in the industry was seen.

Earlier GMK Center reported that China has previously announced plans to continue to reduce steel production in 2022 after reducing production by almost 30 million tons in 2021. Controlling steel production is part of China’s efforts to achieve the country’s goal of reducing carbon emissions.

China is the largest steel producer in the world. According to the results of 2021, Chinese steelmakers have reduced steel production by 3% compared to 2020, to 1.03 billion tons.