China's steel industry notched another production record in the first quarter, spurred by consumption in the infrastructure sector as government stimulus props up demand.
The maker of half the world's steel churned out 231 million tons between January and March, up almost 10 percent from a year earlier and the highest for any first quarter on record. Production in March climbed 10 percent to 80.3 million tons, according to data .
Output is rebounding with steel prices as China's economy holds up, with pro-growth policies helping arrest a slowdown that had weighed on materials demand since the middle of 2018. Spot prices for rebar climbed this week to their highest since November, boosting producer margins and spurring higher output.
China has played an important part in the relocation of the international steel industry. China is now the world's largest steel consumer and one of the largest steel producers and is rapidly industrializing. This rapid industrialization creates a huge demand for steel. Strong growth in demand, together with China's improving comparative advantage in steel production, has provided a favourable environment for the growth of the Chinese steel industry. This will accelerate the process of the relocation of the international steel industry, providing both opportunities and challenges for the international steel industry.
China has taken the lead in steel production in the world,The growth of the steel sector has benefited from the rapid economic development and strong domestic demand. With the fundamentals of the Chinese economy remaining sound, and state investment in the high steel-consumption sector maintaining at a high level, the future development of China's steel industry should be optimistic.