China’s Steel Production Rises 3.1% in 2012 as Economy Expanded
Steel output increased to 716.5 million metric tons in 2012, the National Bureau of Statistics said today. Production in December climbed 7.7 percent from a year earlier to 57.66 million tons, the bureau said.
It’s the 31st annual increase in steel production and came as the world’s second-largest economy expanded 7.8 percent in 2012, according to statistics bureau data released today. China will spend 650 billion yuan ($105 billion) this year on railway construction, more than the 631 billion spent last year, the official Xinhua News Agency reported yesterday.
“Steel production this year may grow at a similar pace to last year,” Hu Yanping, Beijing-based chief analyst with Custeel.com, said in an e-mailed note today. “The government- led investments in infrastructure will continue playing a big role in steel demand.”
Steel reinforcement-bar futures rose for a second day on expectations the government’s increased investment in railways will stoke demand for steel. Rebar for delivery in May rose 1.4 percent to 4,002 yuan a metric ton on the Shanghai Futures Exchange. The alloy gained 2 percent this week, the sixth weekly gain in the last seven weeks.
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