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PrintSHANGHAI (Reuters) - China's crude steel output shrank by 12 percent in November from a year earlier to 35.19 million tonnes, the lowest level since April 2006 as the world's top steel maker cut output and drew down stockpiles.
In the year through November, crude steel output rose 2.6 percent compared with the same period last year to 463 million tonne, but the annual growth rate has fallen sharply as the global financial crisis hurts the real economy.
However, analysts said such low growth in Chinese crude steel production may not last as the country tries to stimulate its economy with near $600 billion and profits for steel makers recover on lower input costs.
"In China, the production cut was due to the mismatch between expensive inventory and gloomy steel prices. However, as soon as steel mills have drawn down their high inventories, they have ramped up production quickly," Macquarie Bank analyst Henry Liu said in a recent report.
China produced 226.97 million tonnes of coal in November, up 3.5 percent from the previous month, the National Bureau of Statistics said on Monday.
"Output has not shown obvious growth, large-scale production cuts have not happened either," Liu said on Monday.
November's output rose 5.2 percent on the year, compared with the 8 percent annual rise in November 2008.
"The relatively moderate growth in coal output was caused by weak downstream demand," said Chen Liang, an analyst at Ping An Securities. "Usually November and December are the peak coal production season."
China's power output in November fell 9.6 percent from a year earlier to 254.02 billion kilowatt hours, while thermal power generation fell a sharp 16.6 percent on the year.
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