Increased steel production in China

China's steel production in August 2016 rose to about 3 percent, up 2.6 percent from July, the National Bureau of Statistics said. According to experts, this is good news for iron ore and coking coal producers.

Chinese metallurgical plants receive 68.57 million tons of steel in August. For eight months of this year, steel production in China amounted to 536.32 million tons, showing a minimum increase of 0.1 percent over the same period last year. The increase is rather low due to the decline in steel production in the first months of this year. In January, production fell by 5 percent.

Analysts are unanimous in their assessment of the current situation. Some of them believe that this is only a temporary improvement. It is difficult to talk about a new trend. Other experts believe that the steel market is starting to bounce, which is good news for the future, especially now that production, albeit minimal, is higher than last year.

However, both sides agree that only the last four months of the year will show what is really going on in the market. However, this could bode well and be the reason for the rise of many industries.

China is both the world's largest producer and consumer of steel. The local steel production situation is reflected in a significant share of the raw materials market. The increase in production is good news for producers of iron ore, coking coal and coke ovens.