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* Avg daily output in Dec at 2.011 mln T vs 2.029 mln in Nov
* December's output up 6.5 percent from yr ago
* Full-year production at record 775.21 mln T, up 8.2 pct on yr
(Updates throughout)
By Fayen Wong and Ruby Lian
SHANGHAI, Jan 20 (Reuters) - China's average daily crude steel output slipped in December from the previous month for its third monthly consecutive drop, government data showed on Monday, as steelmakers reacted to slowing demand growth.
However, monthly output rose by 6.5 percent in December from a year ago to 62.35 million tonnes, bringing the world's steel powerhouse's full-year production to a record 775.21 million tonnes.
Average daily crude steel production was 2.011 million tonnes in December versus 2.029 million tonnes in November, data from the National Bureau of Statistics showed.
The steady fall in China's average daily steel output since October came as China's annual economic growth eased to 7.7 percent between October and December from 7.8 percent in the previous three months, official data showed.
As China's efforts to increase domestic consumption at the expense of exports and investment gather pace this year, most analysts say growth could cool further in the world's second-biggest economy.
"I doubt we'll see such a strong rise in production in 2014 because demand should start to weaken along with the broader economy," said Sun Qiaolin, a steel analyst at Minmetals Futures.
"Tighter credit and tougher policies to tackle overcapacity will also keep a lid on production growth."
China's full-year steel output rose 8.2 percent from the 716.5 million tonnes produced in 2012.
The robust growth in steel production has helped drive a 10.2 percent jump in China's 2013 iron ore imports and lent a strong support to prices.
However, the era of rapid growth in the Chinese steel industry had already come to an end, bringing longstanding problems like overcapacity into sharper focus, Xu Lejiang, chairman of CISA and leading Baosteel Group has said.
The persistent overcapacity and slower economic growth will continue hitting steel mills' margins and force them to slow production.
Xu expected China's annual steel output growth to slow in 2014 to around 3 percent and reach 810 million tonnes.
Steel rebar futures on the Shanghai Futures Exchange
(Editing by Richard Pullin and Muralikumar Anantharaman)
((ruby.lian@thomsonreuters.com)(+86 21 6104 1797)(Reuters Messaging: ruby.lian.thomsonreuters.com@reuters.net))
Keywords: CHINA STEEL/OUTPUT