Posted on 22 Feb 2024
Daily crude steel output among the member mills of the China Iron and Steel Association (CISA) recovered over February 1-10, rising by 2.6% or 53,300 tonnes/day from late January, to average 2.07 million t/d, according to the association's latest release on Wednesday.
Market sources attributed the improvement in daily output to the fact that CISA members had maintained normal operations on some blast furnaces over the period.
Also, early February's daily crude steel output was higher by 0.4% from the corresponding period last year, the CISA data showed.
Based on the performance of its member steelmakers, CISA estimated the country's daily crude steel output averaged 2.66 million t/d during the first ten days of this month, rising by 1.1% from January 21-31, according to the release.
China's domestic steel prices had been largely stable in early February as the steel market gradually quietened with the Chinese New Year holiday (over February 10-17) fast approaching. Meanwhile, spot steel trading came to a standstill as traders closed their businesses and work on construction sites was suspended as well, Mysteel Global notes.
As of February 9, the national price of HRB400E 20mm dia rebar, for example, had fallen by Yuan 9/tonne ($1.3/t) from the price on January 31 to reach Yuan 4,031/t including the 13% VAT, according to Mysteel's assessment.
On the other hand, the pickup in steel output and sparse steel sales saw finished steel stocks among CISA's members swell substantially as of February 10, with the volume climbing by 23.8% or 2.9 million tonnes from January 31 to settle at 15.1 million tonnes. The total was lower by a large 16.3% or 2.9 million tonnes from the same period last year though, according to the association.
Stainless Steel Stocks in Wuxi and Foshan as of Feb 19.
Location | CRC (t) | WoW | HRC (t) | WoW | Total (t) | WoW |
Wuxi | 394,891 | 14.76% | 275,370 | 20.85% | 670,261 | 17.19% |
Foshan | 280,384 | 20.53% | 82,968 | 11.51% | 363,352 | 18.34% |
Note: Including all the series of stainless products at the traders.
Source:Mysteel Global
