China's crude steel output in July eased 0.34% from the prior month, the statistics bureau said on Tuesday, because of production restrictions in Tangshan city in northern China and Sichuan province in the southwest.
The world's largest steel producer manufactured 90.8 million metric tons of the ferrous metal last month, down from 91.11 million tons in June but up 11.5% from the same month in 2022, when steel mills cut production amid shrinking margins as property sector woes stifled demand.
Tangshan, China's top steelmaking hub, intensified its production controls in late July by requiring some mills to suspend operation of at least one blast furnace until the end of July, cutting about 488,200 tons of hot metal output from blast furnaces, consultancy Mysteel said in a report. Some electric-arc-furnace steel mills also cut production in July due to losses from rising production costs as steel scrap prices hovered at high levels amid tight supply, and from higher electricity tariffs in some regions because of extreme temperatures last month, Jiangsu Fushi's Cai said.
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