China's total pig iron production decreased by 4.0% month on month but rose 3.9% year on year to 67.48 million tonnes in November, showed data from the National Bureau of Statistics (NBS). The average daily output estimated at 2.25 million tonnes was 0.8% lower than in October.

China's top five provinces in pig iron production – Hebei, Jiangsu, Shandong, Liaoning and Shanxi – churned out 37.49 million tonnes of the product in the same month, accounting for 55.5% of the country's total, official data showed.

In November, Hebei, Jiangsu, Shandong, Liaoning and Shanxi respectively contributed 21.1% (14.21 Mt, -6.1% MoM), 11.5% (7.74 Mt, +4.4% MoM), 8.5% (5.71 Mt, -5.3% MoM), 7.9% (5.36 Mt, -2.2% MoM) and 6.6% (4.47 Mt, -12.9% MoM) of the total pig iron output, NBS data showed.

In November, only the first six provinces reported their respective pig iron production exceeding 3 million tonnes, and Guangxi ranked sixth with its production at 3.01 million tonnes, representing 4.5% of China's total.

Almost 70% of the 28 provinces and regions witnessed month-on-month decreases in pig iron output in November, of which the biggest decrement of 930,000 tonnes was seen in Hebei, and the sharpest decrease rate 25.6% in Xinjiang.

Among provinces and regions exhibiting an increase in their pig iron production from the previous month, Jiangsu's output rose 329,000 tonnes, marking the biggest increment, while Gansu registered the largest growth of 15.3%.

China produced 780 million tonnes of pig iron in the first eleven months, down 3.5% year on year. The combined output of Hebei, Jiangsu, Shandong, Liaoning and Shanxi contributed 450 million tonnes, taking up 56.9% of the total.

China's crude steel output hit 78.4 million tonnes in November, down 4.3% from a month ago but up 2.5% from the year prior. The average daily output estimated at 2.61 million tonnes decreased by 1.1% compared with the month before.

The top five provinces – Hebei, Jiangsu, Shandong, Liaoning and Shanxi – produced a total 39.75 million tonnes of crude steel in November, accounting for 50.7% of China's total.

Crude steel production in Hebei, Liaoning, Shandong and Shanxi reversed a rise to decline, while Jiangsu' production bounced back. In particular, the top Hebei's output was 1.4 times that of the second Jiangsu, and Liaoning exceeded Shandong taking third place.

In November, Hebei, Jiangsu, Shandong, Liaoning and Shanxi respectively contributed 17.3% (13.6 Mt, -7.5% MoM), 12.7% (9.97 Mt, +8.6% MoM), 7.4% (5.78 Mt, -3.7% MoM), 7.3% (5.7 Mt, -6.6% MoM) and 6.0% (4.7 Mt, -17.4% MoM) of the total crude steel output, NBS data showed.

Only four out of 28 provinces saw crude steel production of over 5 million tonnes in November, with Shanxi's output above 4 million tonnes, while other provinces registered output of below 4 million tonnes. Production of the sixth-ranked Guangxi was 3.34 million tonnes.

Nearly 70% of the total 28 provinces and regions registered losses in crude steel production on a monthly basis, with the biggest decrement of 1.1 million tonnes seen in Hebei and the sharpest reduction rate of 42% observed in Guizhou.

Among provinces and regions with month-on-month increases, crude steel production recorded the largest increment of 793,000 tonnes in Jiangsu and the biggest fall in Fujian at 15.2%.

China's crude steel production over January-November fell 2.7% year on year to 930 million tonnes, of which 490 million tonnes or 52.3% were contributed by the top five provinces.

In November, the steel market gradually entered a seasonal off-season as temperature went down, capping steel demand and slowing destocking. This, coincided with abated restocking interests for winter and weaker-than-expected economic policies, resulted in price fluctuations of steel product prices.

The optimism of the steel market began to recede as the U.S. President-elected Donald Trump threatened to impose higher tariff against China and due to the underwhelming economic stimulus package after 12th meeting of the Standing Committee of the 14th National People's Congress. The trading logic of the spot market is adapting to basic fundamentals.

Steel companies have fallen into red, denting their production enthusiasm. Coupled with environment protective measures, steel production was pressured and most continued output cuts, dragging down molten iron production.

In December, China's domestic demand continued to shrink, while the uncertainty of overseas market increased, exacerbating the pressure on domestic steel market.

This prompted some steel mills to adjust their production strategies to balance supply and demand, and mills continued maintenance. Therefore the domestic pig iron and crude steel production may continue to decline in December.