While we have remained bearish for much of the global economy and certainly for the steel market outside of China, one positive issue that we have continued to stress in our work is that there has been a very solid chance that China’s steel production bottomed in late July.  New today is data released showing China’s steel production increased again in late August, just as it increased first back in early August and then again during the middle of the month.   Daily crude steel production at large and medium-sized mills in China averaged 2.03 MMT during August 21- 31.  This is up by 2% from the middle of August, is up by 7% from the low seen in late July and is down year-on-year by only 1%. 

The ongoing rebound in China’s steel production is encouraging especially considering that it has been occurring while coronavirus cases and restrictions have been intensifying across the nation.