Iron ore chart at Shanghai Exchange (Source: Shfe)

This uptrend is likely to continue in December 2021 and beyond, as steel mills ramp up production after completing the 2021 output cut requirement in November and seeing an improvement. on profit margins.

Expectations of additional monetary easing and supportive policies in the real estate and infrastructure sectors in 2022 will boost sentiment towards steel demand and these, industry sources said. will help offset the increase in supply.

According to data released on December 15 by the National Bureau of Statistics of China, the country’s crude iron and steel production in November 2021 increased again with an increase of 0.1% and 1.2% compared to the previous year. with October, up 2.06 million tons/day and 2.31 million tons/day, respectively.

However, compared to the same period last year, China’s crude iron and steel output in November 2021 was still 16.6% and 22% lower, at 61.73 million tons and 69.31 million tons, respectively. .

From January to November, China’s crude steel output reached 946.36 million tons, down 2.6%, or 25.26 million tons, year-on-year. Cast iron output fell 4.2% year-on-year to 796.23 million tons.

China is expected to further limit its steel production in 2022 to the 2021 range, as the country is working towards meeting its carbon target. Therefore, there will be more production quotas for 2022.