Monthly Industry Briefings > Monthly Industry Forecasts > Basic Metals

Recent data suggest Chinese crude steel production is slowing. On a seasonally adjusted month-on-month basis, Chinese output rose just 0.1% in August after increasing 0.2% in July. This is broadly in line with our assumption of a slowdown in production this year. In the developed world, production ticked up in August, with Japanese production up 1.7% and Western European output expanding at a similar rate. Increases in Western Europe were registered across the main steel-producing countries with the exception of Germany and Spain. US production dipped 0.6% after three consecutive months of 2%+ growth. With much of Chinas excess production finding its way onto international markets, the slowdown there may give steel producers elsewhere a breather.