China Steel Output Drops

China’s steel output saw a drop in August and prices of steel products have continued to fall, data from the National Development and Reform Commission (NDRC) showed Thursday.

Crude steel production shed 1.7 percent year on year in August, contrasting with the 13.8-percent growth recorded during the same period last year, the NDRC said in an online report.

In August, the composite price index for China’s domestic steel products averaged at 104.39 points, pulling back 7.64 points from the previous month and down 30.78 points from a year earlier, according to the NDRC.

In the first eight months, China produced 481.57 million tonnes of crude steel, up 2.3 percent year-on-year. The growth represented a retreat of 8.3 percentage points from the growth seen a year earlier.

Profits of the steel and iron industry dropped 48.3 percent year on year to 79.3 billion yuan (12.5 billion U.S. dollars) during the January-July period, the NDRC said.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza