China’s crude steel output is expected to increase by 3.0 percent in 2017 to 832 million mt, while it is foreseen to rise by 0.7 percent to 838 million mt in 2018, year on year, as stated by the China Metallurgical Industry Planning and Research Institute (MPI) in a report issued on December 4.
Although China has eliminated some outdated capacity, major steel mills have increased their production operations, which will contribute to the increasing crude steel output.
In the report, MPI also stated that China's iron ore demand in 2017 is expected to increase by 1.3 percent to 1.122 billion mt and will likely decrease by 0.2 percent in 2018 to 1.12 billion mt, year on year.
Meanwhile, MPI also expects that China’s net exports of steel products will amount to 63 million mt in 2017 and 2018, respectively, up three percent and 0.7 percent year on year. At the same time, it also predicts that the country’s steel demand will rise to 726 million mt in 2018 from 722 million mt in 2017, benefiting from China’s steady economic growth. China’s pig iron output is foreseen to reach 710 million mt in 2017, up 1.3 percent year on year, while pig iron output in 2018 is expected to total 709 million mt, down 0.1 percent year on year.