Based on Platts' estimated crude steel capacity in China of 1,230 million mt/year in 2020, the utilization rate was 92% in September, up from 91% in August.
China produced 92.56 million mt of crude steel and 75.78 million mt of pig iron in September, up 10.9% and 6.9% year on year respectively, the NBS data released Oct. 19 showed. The crude steel daily average was up 0.8% month on month, while pig iron was down 0.3% over the same period.
Over January-September, China's crude steel and pig iron output increased by 4.5% and 3.8% year on year respectively to 781.59 million mt and 665.48 million mt.
The disparity between the crude steel and pig iron growth rates in September was due mainly to soaring iron ore prices forcing mills to consume more scrap instead of hot metal in the steelmaking process, some market sources said.
Platts IODEX 62% iron ore index touched $130.80/dmt CFR China Sept. 3, its highest since January 2014.
However, China's record high steel production in September encountered slow demand in the major steel consumption sectors of infrastructure and property, prompting a fall in steel prices through the month.
