China’s crude steel output hit a record high of 70.65 million metric tons in March, data showed on Friday, as a rally in steel prices and a seasonal pick-up in demand encouraged steel mills in the world’s top producer to boost production.

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Steel output rose 2.9%  from a year ago, beating market expectations, although total output in the first quarter was down 3.2% at 192.01 mmt, according to data from China’s National Bureau of Statistics.