Posted on 18 Sep 2023
China's production of pig iron increased by 3.7% on year to hit 603.6 million tonnes during January-August this year, with the on-year growth rate being slightly faster than the 3.5% recorded during the first seven months, according to the latest data released by the national Bureau of Statistics (NBS) on September 15.
The increase in the pig iron output was also larger than the 2.6% on-year increase in the country's crude steel production, Mysteel Global noted.
During August alone, China produced 74.62 million tonnes of pig iron, 4.8% higher than in August last year, the NBS data showed. On a per-day basis last month, however, the production averaged 2.4 million tonnes/day, lower by some 4% on month.
Pig iron output decreased overall from July as some blast furnace (BF) steelmakers in North China were producing at less-than-full capacity in early August while bringing idled furnaces back online, Mysteel's survey showed.
Authorities in North China's Tangshan ordered local steelmakers to cut back production to prevent the city's air quality from deteriorating in July, and the restrictions were not lifted until the end of that month, as reported.
Meanwhile, the shrinking margins also made the mills more cautious about resuming production, Mysteel Global noted. Among the 247 BF mills under Mysteel's weekly survey, only around 45% managed to secure some profits over August 25-31, significantly lower than the 64% during the last week of July.
The strengthening of iron ore prices, as well as the slide in finished steel prices, caused more mills to suffer losses, according to Mysteel's tracking.
For example, as of August 31, Mysteel PORTDEX 62% Australian Fines in Qingdao hit Yuan 924/wmt (128.8/wmt), higher by 4% on month. As of the same day, China's national price of HRB400E 20mm dia rebar under Mysteel's assessment had lost Yuan 110/t or 2.8% on month to settle at Yuan 3,776/t including the 13% VAT, Mysteel assessed.
Source:Mysteel Global
