Aug 15 (Reuters) - China's crude steel output fell 6.4% in July from a year earlier, as an ailing property sector dampened demand.
The world's top steelmaker churned out 81.43 million tonnes of the metal last month, according to data from the National Bureau of Statistics on Monday, down 10.25% from 90.73 million tonnes in June.
July's average daily output was 2.63 million tonnes, according Reuters calculations, compared with an average of 3.02 million tonnes in June. The July daily output levels also hit their lowest since November 2021.
Fragile sentiment in the real estate sector due to debt woes at many of the nation's property developers has been further corroded by nationwide threats by home buyers to stop paying mortgages for unfinished projects.
Analysts are not expecting a quick rebound that would increase steel demand.
"Beijing has stepped up fiscal policies to support economic growth, but we see new downside risks. There is a long way to go before the property sector will see any meaningful rebound," ANZ Research said in a note.
"Environmental constraints are also likely to reduce China's crude steel output, so we have lowered our steel production assumptions and now expect a second consecutive year of contraction."
China's steel consumption is expected to dip 0.7% this year to 947 million tonnes, according to a forecast from the China Metallurgical Industry Planning and Research Institute, also hit by pandemic uncertainties and sharp rises in raw material prices. (Reporting by Emily Chow in Kuala Lumpur; Editing by Christian Schmollinger and Rashmi Aich)
