China steel supply needs adjusting, industry official says (updated)

China Steel

24/10/2023 06:38

(Rewrites, adding background and quotes from officials)
       BEIJING, Oct 24 (Reuters) - Steel supply in China, the
world's top consumer and producer, will need to be adjusted in
the coming months to match a  seasonal drop in demand, industry
officials said, also noting that orders from exporters this
quarter have fallen.
    Chinese steel consumption fell 1.5% in the first three
quarters of 2023 compared with a year ago, according to data
from the China Iron and Steel Association (CISA). Output in the
same period increased 1.7%, separate data showed.
    China has capped growth in its steel production for the last
two years to curb carbon emissions, but not issued a similar
mandate so far this year.
    Asked if output this year would be kept at the same as last
year's level, Shi Hongwei, CISA's deputy secetary general, told
reporters that output will need to be adjusted. 
    "Steel demand will typically contract in winter; in this
case, adjustment is needed in the supply side to achieve a
balance," he said.
    He declined to comment on how the adjustment would be made.
    China's steel supply and demand in the fourth quarter is set
to fall, CISA officials added, noting that output could be
restricted due to environmental concerns.
    Higher steel exports along with demand from the
manufacturing sector have driven demand this year, Jiang Wei,
the association's vice chairman told the briefing.
   

 (Reporting by Amy Lv and Dominique Patton; Editing by
Christopher Cushing and Edwina Gibbs)
 ((dominique.patton@thomsonreuters.com;))