China steel production data may mask greater overcapacity

China may have been underestimating steel production in recent years, with last year’s crude steel output at 822 million tons–over 40 million tons more than official figures, Reuters reported, citing its own calculations and estimates from consultancy MEPS. While the National Bureau of Statistics has not officially revised 2013 output data, growth rates for January-November this year imply 2013 production was 803 million tons, 24 million tons more than originally reported, according to Reuters calculations. MEPS, which has been tracking the mainland steel industry since the late 90s, said it had seen indications of underreporting by at least 30-40 million tons annually since 2012.