China pushes global steel production in August

According to the World Steel Association (WSA) report released yesterday, global metallurgy rose in August on the back of increased production in China, the world's largest steel producer. Healthy gains in India and the United States also boosted production.

Steel production in 67 responding countries increased 6.3% year-on-year in the reporting month to $ 143.6 million, according to the International Trade Organization for the Metals Industry.

By region, production data for August shows production in the Commonwealth of Independent States (“CIS”) declined by 4%.

Growth was seen in major Asian manufacturers, excluding Japan. China's heavy plate continues to pile up amid global overproduction. Steel mills in the country are ramping up sheet metal in stock to take advantage of steel prices, resulting in increased profits for the industry.

However, production cuts are expected later this year as Beijing pushes forward structural reform on the supply side to optimize its burgeoning steel sector. Earlier this year, China announced plans to cut its steel production capacity by about 50 million tons in 2017 in order to reduce overcapacity and tackle pollution.