According to Bloomberg, China's steel production in April 2021 amounted to 97.9 million tons, which was a record monthly and daily.
This is 4.1% more than in March, and far (15.1%) exceeds the production volume of 85.03 million tons in April 2020.
Average daily production in April increased by 7.5% compared to March to 3.26 million tons, which is also a historic high.
The strong production rate also boosted the annual rate to 375 million tonnes, up 16% over the same period last year. This is due to the fact that iron ore stocks in Chinese ports are declining during the third week, which indicates an increase in demand.
Chinese officials reaffirmed their commitment to control pollution in their vast steel industry by imposing restrictions on fresh food production at the Tangshan plant and planned nationwide inspections to reduce production capacity. At the same time, the global boom in the steel industry is contributing to lower iron ore reserves and higher prices.
"As steel production in China continues to grow, steel margins remain high and iron ore shipments by sea remain limited, we think the iron ore price may remain at current levels in the second quarter, but is likely to remain very volatile." - the message says. a note from Morgan Stanley analysts.