BEIJING: CHINESE steel production fell in the first quarter of this year due to sluggish market demand and rising cost of environmental protection.
Crude steel output dropped 1.7 percent from a year ago to 200.1 million tons in the first three months of 2015, accounting for slightly more than a half of the world’s total, according to data from the China Iron and Steel Association yesterday.
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But steel companies’ inventory rose by 40,000 tons in the first quarter from the same period in 2014, the data showed.
The first quarter had been a difficult period for the steel producers as the revenue for big steel companies dropped 14.48 percent year on year to 762.92 billion yuan (US$123 billion) due to weak market demand and falling prices, CISA said.
The steel producers were also beset by financing costs despite the central bank cutting rates twice in recent months.
They also faced tight emission standard from this year which raised costs of environmental protection for them.
