Posted on 17 Apr 2024
Daily crude steel output among the member mills of the China Iron and Steel Association (CISA) during April 1-10 reversed down from late March, though the average dipped by a small 0.5% or 10,000 tonnes/day to 2.11 million t/d, according to the association's release late Monday. Average daily output during the first ten days of April was lower by a larger 9.1% on year, it noted.
The early April dip in daily output stemmed from the fact that the mills' enthusiasm for production had been constrained by the slow demand recovery from the embattled property market and infrastructure construction, according to a market source. He also noted that speculative buying activities shrank substantially during the period.
Based on its member-mill results, CISA also estimated that the country's daily crude steel output averaged 2.53 million t/d during early April, slipping by 0.4% from March 21-31.
Chinese finished steel prices had strengthened overall in early April amid better market sentiment, with the country's national price of HRB400E 20mm dia rebar, for example, rising by Yuan 52/t from March 29 to reach Yuan 3,666/t and including the 13% VAT as of April 10, according to Mysteel's assessment.
Meanwhile, the daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 Chinese trading houses under Mysteel's tracking had leapt by 21% or 27,600 t/d from late March to 158,979 t/d on average in early April. However, this result was far below the 200,000 t/d threshold usual for peak consumption periods and lower by 2.9% on year.
On the other hand, lower output saw finished steel stocks at the association's member mills decline further by 0.9% or 173,600 tonnes from March 31 to settle at 18.3 million tonnes as of April 10, according to CISA. This tonnage was also lower by 0.4% or 66,200 tonnes from the same period last year.
Source:Mysteel Global
