China, which supplies half of global output, produced less steel in the first two months of this year, extending a decline as the government announced efforts to cut overcapacity in a slowing economy.
Data published by the country’s statistics bureau on the weekend showed crude-steel production for the January-to-February period fell 5.7 percent from a year earlier to 121.07 million metric tons. Steel products output fell 2.1 percent to 162.28 million tons.
Annual steel output shrank 2.3 percent to 804 million tons in 2015, the first contraction since 1981. Steel consumption in China, which fell 5.4 percent last year, will drop a further 3 percent in 2016, according to estimates from the China Iron & Steel Association.