Posted on 25 Apr 2024
Daily crude steel output among the member mills of the China Iron and Steel Association (CISA) recovered during April 11-20, albeit by a tiny 0.3% or 7,000 tonnes/day from early April, to average 2.12 million t/d, according to the association's release on Tuesday. Market sources attributed the rise in daily output to some mills resuming operations gradually after their profitability had improved.
However, mid-April's daily crude steel output was still lower by 7.5% from the corresponding period last year, according to the release.
Based on the performance of its member mills, CISA estimated the country's total daily crude steel output at 2.53 million t/d during mid-April, edging up by 0.3% from the previous ten days.
China's domestic steel prices have strengthened recently, driven by improved market sentiment and supported by resilient prices of steelmaking raw materials, Mysteel Global notes.
On April 19, the country's national price of HRB400E 20mm dia rebar, a bellwether of domestic steel-market sentiment, was assessed by Mysteel at a one-month high of Yuan 3,812/tonne ($526/t) including the 13% VAT, jumping by Yuan 146/t from that on April 10.
In tandem, Mysteel SEADEX 62% Australian Fines price index for iron ore had strengthened by $10.75/dmt from April 10 to reach $116.9/dmt CFR Qingdao by April 19.
As for demand, the spot trading volume of construction steel comprising rebar, wire rod and bar-in-coil among the 237 Chinese trading houses under Mysteel's tracking averaged 161,870 t/d in mid-April, edging up 1.8% from this month's first ten days.
On the other hand, finished steel stocks at CISA's member mills had thinned further as of April 20, with the volume sliding by 0.8% or 137,700 tonnes from April 10 to 18.1 million tonnes. The totals were also lower by 2.3% or 425,000 tonnes from the same period last year, according to CISA.
Source:Mysteel Global
