Global steel production edged up in August, the World Steel Association said

Global crude steel production edged up in August as higher production in China, the world's largest producer, offset declines triggered by covid-19 in most of the rest of the world, according to data released on Thursday by the WorldSteelAssociation.

But output growth in China is expected to slow in the coming months, despite continued government stimulus spending, one analyst warned.

China is the world's leading producer and consumer of steel.

"While steel demand from China's infrastructure sector will remain strong in the coming months, we suspect it will be partly offset by weaker demand from the property sector," said SamuelBurman, commodities economist at CapitalEconomics.

Global steel production rose 0.6% in August to 156.2 million tons, the World Steel Association said on Thursday.China's output rose 8.4% to 94.8 million tons.

Outside China, steel projects are still struggling, with output plunging 20.6 per cent in Japan, 13.4 per cent in Germany and 24.4 per cent in the US.

"In fact, with the recent reimposition of virus-related quarantine measures in Europe, India and other countries, steel demand is likely to fall again, and steel production outside China may even fall further in the coming months," Burman added.