China's September steel output falls from record

National Bureau of Statistics (reported via Reuters)

• September steel output rises 5.3% y/y
• Total Jan.-Sept. output +6.3% y/y
• Steel mills curb production ahead of winter air pollution curbs

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• China's steel output in September fell 3.7 percent from the previous month, when output reached a record, as mills in the world's top producer curbed output because of the central government's crackdown on air pollution and overcapacity
• September output was the lowest since February
• Steel rebar futures in China have risen 40 percent this year, driven by government efforts to shut down inefficient and highly polluting steel plants such as induction furnaces since the end of last year.
• Chinese mills have ramped up their steel output this year as the higher prices have fattened profit margins. However, output may continue to fall as steelmaking regions shut production lines to comply with government-mandated air pollution targets during the winter heating season.