According to statistics released by the National Bureau of Statistics (NBS) of China, China’s crude steel output in March increased by 4.6% year on year to 92.84 million tons, the highest since May last year, mainly driven by strong exports and improved steel profits.

The average daily output in March was about 2.99 million tons, higher than the figures in the previous two months and the same period last year, in line with market expectations.

However, analysts expected output to remain flat or slightly fall in April due to China-US trade frictions and weak domestic demand. Although steel mills' profitability has improved due to the recent rebound in steel prices, with the proportion of profitable steel mills increasing significantly in March, the adjustment in the real estate market and uncertain infrastructure demand still pose challenges.

Strong manufacturing and export demand provided support for the steel market. The total crude steel output in the first quarter of this year grew by 0.6% year on year to 259.3 million tons.