Posted on 13 Feb 2023
Daily crude steel output among the member mills of the China Iron & Steel Association (CISA) increased again over January 21-31 to reach the highest average since early December last year, according to the latest data released by the association on Friday.
Daily output during the last 11 days of last month rose faster by 2.6% or 50,600 tonnes/day from mid-January to average 1.99 million t/d, as against the 0.6% or 10,900 t/d uptick in the prior 10-day period, the CISA data showed.
Behind the further gain in daily output was the fact that some blast-furnace (BF) mills had resumed production or ramped up output after profit margins on steel sales had improved, according to a Shanghai-based source.
In tandem, the slowdown in spot trading activity in the domestic market due to the Chinese New Year holiday (over January 21-27) saw finished steel stocks held by these member mills mount further, with the stored steel mounting by 2.6% or 418,200 tonnes from January 20 to top 16.5 million tonnes as of January 31, according to the release.
Based on the latest statistics, CISA estimated that the country's total daily crude steel output during late January averaged 2.46 million t/d, higher by nearly 2% from the prior 10 days.
Mysteel's survey among the 247 BF and 87 electric-arc-furnace makers nationwide it regularly tracks showed a similar trend during the same period, as their daily steel output gained by 1.1% or 28,700 t/d from mid-January to average 2.62 million t/d for late January.
Meanwhile, Chinese steel prices posted modest gains after the holiday break, another incentive for mills to beef up output. As of January 31, the national price of HRB400E 20mm dia rebar for example, had moved up by Yuan 79/tonne ($11.6/t) from that on January 20 to settle at Yuan 4,338/t including the 13% VAT, according to Mysteel's assessment.
Source:Mysteel Global
