China steel output up in Aug, but pace eases

China steel output up in Aug, but pace eases. Chinese steel production remained high in August, but could slow in September after several provinces ordered steel mills to limit production. China produced 1.7 million tonnes per day of crude steel in August, data from the China Iron & Steel Association showed, higher than an average 1.66 million tonnes per day in July. Steel mills ramped up production after steel prices rebounded from the middle of July, in an anticipation of rising demand in September and October. However, CISA data also suggested crude steel production slowed in the last 11 days of August after output in several provinces was affected by reduced electricity supply. Daily output slowed 1.8 percent to 1.68 million tonnes per day after staying above 1.7 million tonnes per day in the first and second ten days of August. Data also showed that CISA's 78 member steel mills reduced output to 1.398 million tonnes per day in late August, from previous levels above 1.4 million tonnes per day in early and mid-August. The Chinese authorities have committed to reducing energy consumption per unit of GDP by 20 percent by the end of this year, the last year of its 11th five-year plan. So far, the country has achieved only 14.8 percent. A large number of steel mills in Hebei province, the country's largest steel-producing region, have been ordered to cut production by up to 70 percent for the rest of the year. Hu Yanping, an analyst with Custeel.com, estimated national crude steel output would fall by more than 5 million tonnes in September. By Ruby Lian and Tom Miles