<article><p class="lead">China's crude steel output increased by 5.2pc to a record 1.053bn t in 2020 in response to a quick recovery in construction and manufacturing demand after Covid-19 lockdowns. </p><p>Crude steel output rose by 0.75pc to 2.94mn t/d in December from 2.92mn t/d in November, according to data from the national bureau of statistics (NBS) released today. December output on an outright basis increased by 4pc from November and by 7.7pc from a year earlier to 91.25mn t. </p><p>Finished steel output rose by 7.7pc to a record 1.325bn t in 2020. Pig iron output rose by 4.3pc from a year earlier to 887.52mn t in 2020. </p><p>Metallurgical coke output totalled 471.16mn t in 2020, unchanged from 2019. China's met coke prices have been supported by <a href="https://direct.argusmedia.com/newsandanalysis/article/2176853">tight supply</a> caused by delayed capacity replacements, but December output posted modest year-on-year growth. </p><p>China's economy <a href="https://direct.argusmedia.com/newsandanalysis/article/2177845">grew by 2.3pc in 2020</a>, which is expected to make it the only major global economy to achieve positive growth last year, said Ning Jizhe, head of the NBS. Steel, a pillar industry for China's economic growth, demonstrated a better-than-expected performance, with prices increasing most of the year. <i>Argus</i>-assessed hot-rolled coil (HRC) prices in Shanghai increased to 4,970 yuan/t ($766/t) on 21 December, the highest level the price series started in February 2016. </p><p>China's steel output peaked in September, averaging 3.09mn t/d. This began to fall in October after north China implemented winter output restrictions, with wide profits driving mills to use more high-grade iron ore to <a href="https://direct.argusmedia.com/newsandanalysis/article/2176838">maximise production</a>. </p><p>Strong steel demand in China also lifted its 2020 steel imports to the highest level since 2005, even as the country maintained its status as the world's biggest steel exporter. </p><p>China's steel imports rose by 64.4pc from a year earlier to 20.23mn in 2020, with exports falling by 16.5pc on the year to 53.68mn t. But as China pushes for emissions reduction and a more self-sufficient steel industry, its crude steel output may <a href="https://direct.argusmedia.com/newsandanalysis/article/2175642">face some hurdles in 2021</a>. </p><p><table class='tbl-excel'><tr><td class='tbl-header' colspan='5'>China&#39;s December ferrous output data</td><td class='tbl-header tbl-right tbl-italic'>&#39;000s t</td></tr><tr><td class='tbl-columnheader tbl-bold tbl-left'></td><td class='tbl-columnheader tbl-bold tbl-center'>Dec-20</td><td class='tbl-columnheader tbl-bold tbl-center'>Nov-20</td><td class='tbl-columnheader tbl-bold tbl-center'>Pc on the year</td><td class='tbl-columnheader tbl-bold tbl-center'>Jan-Dec 2020</td><td class='tbl-columnheader tbl-bold tbl-right'>Pc on the year</td></tr><tr><td class='tbl-rowspace' colspan='6'></td></tr><tr><td class='tbl-left'>Crude steel output</td><td class='tbl-right'>91,250</td><td class='tbl-right'>87,660</td><td class='tbl-right'>7.7%</td><td class='tbl-right'>1,053,000</td><td class='tbl-right'>5.2%</td></tr><tr><td class='tbl-left'>All steel output</td><td class='tbl-right'>120,340</td><td class='tbl-right'>117,340</td><td class='tbl-right'>12.8%</td><td class='tbl-right'>1,324,890</td><td class='tbl-right'>7.7%</td></tr><tr><td class='tbl-left'>Pig iron ore output</td><td class='tbl-right'>74,220</td><td class='tbl-right'>72,010</td><td class='tbl-right'>5.4%</td><td class='tbl-right'>887,520</td><td class='tbl-right'>4.3%</td></tr><tr><td class='tbl-left'>Met coke output</td><td class='tbl-right'>39,720</td><td class='tbl-right'>40,460</td><td class='tbl-right'>1.2%</td><td class='tbl-right'>471,160</td><td class='tbl-right'>-0.0%</td></tr><tr><td class='tbl-footer tbl-right tbl-italic' colspan='6'>Source: NBS</td></tr></table></p></article>
