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China's crude steel production increased 3.9% year-on-year in September to 68.2Mt, Reuters reported, citing data from the country's national bureau of statistics.
Output has now increased in each of the past seven months.
Chinese steel plants have increased their output amid a modest demand recovery in September, after the end of summer. But some producers are starting to report losses in October on higher coal prices, Reuters added.
Crude steel output over the January to September rose 0.4% to 604Mt.
China's highest administrative body, the State Council, said in February the country planned to cut 100-150Mt of steel capacity over the next five years.
About 700Mt out of a total 2.3Bt of global steelmaking capacity is spare, with cuts of around 400-500Mt needed by 2020 to balance the market, but few believe such cuts will materialize.
As of July, China had achieved 47% of its target to cut steel capacity by 45Mt this year, the government's official news service Xinhua said at the time.