China''s Steel Output to Decline in March Amid Weak Demand

China's crude steel production, after a surprising increase in the first two months of 2024, is expected to fall sharply in March. Analysts predict a significant drop compared to March 2023 figures, as delayed restarts after the Lunar New Year and maintenance work reflect lackluster demand. The decline is attributed to slower-than-expected construction activity due to limited capital and decreased issuance of special infrastructure bonds. Provincial steel associations have encouraged voluntary production cuts to address falling prices. While environmental restrictions in the major steel hub of Tangshan have now been lifted, market sentiment remains cautious with many mills planning maintenance periods during this typically peak demand month. Some analysts foresee potential improvement in April with anticipated restocking ahead of the May Day holiday.