China's crude steel output continued to decline in the first four months of this year, data from the country's top economic planner showed on Wednesday. Crude steel production dipped 2.3 percent year on year to 261.42 million tonnes in the Jan.- April period.
The drop expanded from the 1.3-percent decrease in the same period last year, according to the National Development and Reform Commission (NDRC). In April alone, crude steel production gained 0.5 percent year on year to 69.42 million tonnes, compared with a 0.7-percent decline in the same period last year.
Steel prices picked up sharply in April, with the domestic steel price index gaining 11.29 points from March to 78.42, and also up 4.43 points from a year earlier, according to the NDRC. China's over-supplied steel sector experienced years of plunging prices and factory shutdowns due to the sluggish economy.
However, with encouragement from an upward trend in prices in March, many steel mills are resuming production. The government has shut down factories with a total capacity of over 90 million tonnes in the past five years and plans to slash another 100 million to 150 million tonnes by 2020. Crude steel output fell for the first time in a quarter of a century last year, down 2.33 percent year on year. China remains the world's largest steel producer and consumer.
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