China’s daily crude steel output picks up in early February

China’s daily crude steel output rebounded in early February, after hovering at relatively low levels over the preceding three weeks.


Member mills of the China Iron & Steel Assn (Cisa) produced crude steel at an average rate of 1.56 million tpd during the first ten days of this month, up 3.7% from the last eleven days of January, according to estimates from the industry body reported late on Monday February 22.
Cisa member mills, which are mainly medium-sized and large steelmakers, account for roughly 80% of the country’s total steel output.
The pick-up in steel output came earlier than expected. Most market participants had not anticipated any change to output levels ahead of the February 7-13 Chinese New Year holiday.
“It’s hard to find a reason for the production increase. I can only guess that some mills might have taken an early step in preparation for the post-holiday demand from the market,” a Shanghai-based trader told Steel First.
As at February 10, Cisa member mills had a combined finished steel inventory of 13.85 million tonnes, up 15.23% from January 31 levels, the association’s data shows.
 

Della Fu

Published

Della Fu

February 23, 2016

04:42 GMT

Shanghai