(Bloomberg) -- Chinese steel production and crude oil refining continued to slump in September, while output of other key commodities rose.
Steel mills churned out 77.07 million tons last month, the lowest total this year, leaving production in the first nine months down 3.6%, according to the statistics bureau on Friday. Oil refining fell to a three-month low of 58.73 million tons as more units were shuttered for seasonal maintenance, with year-to-date production falling 1.6%.
In terms of profitability, steelmaking and oil processing are China’s worst performing industrial sectors this year. For that, blame the property crisis and decarbonization. Steel mills are being forced to slash output as the industry’s downturn worsens. Refiners are contending with a long-term decline in gasoline consumption due to the electrification of China’s car fleet, while diesel demand is faltering because of the slowdown in construction.
Chinese coal output, however, suggests another banner year is in the offing, with September’s total reaching the second-highest level on record. It follows data earlier in the week that showed imports climbing to an all-time high as Beijing takes no chances in guaranteeing that factories and households have enough fuel over the colder winter months.
Natural gas production also rose from last year. The extra supply of power fuels comes even though industrial demand has weakened and the contribution from renewables has expanded dramatically.
Aluminum output increased, and ample power supplies are likely to stoke further gains in production through the rest of the year.
--With assistance from Sarah Chen, Kathy Chen and Winnie Zhu.
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