Posted on 10 Sep 2024
Daily crude steel output among the member mills of the China Iron and Steel Association (CISA) touched the intra-year low of 1.89 million tonnes/day during the last 11 days of August, falling by 5.4% or 108,000 t/d from mid-August, faster than the 0.5% drop in the prior 10-day period, according to the association's new release on September 7.
The CISA data also showed that the output figure was also 7.8% lower on year. Market sources said that more integrated steel mills in China scaled back operations at their blast furnaces late last month as their production enthusiasm had been battered by heavy losses they suffered.
Based on its member mills' production results, CISA estimated the daily crude steel output nationwide at 2.58 million t/d over August 21-31, slipping by 4.2% from the middle 10 days of August.
As of August 29, only 3.9% of the 247 steelmakers under Mysteel's regular tracking nationwide managed to earn profits on their steel sales. Although Chinese steel prices showed signs of rebounding in late August, Chinese steelmakers' profitability remained poor with the rise in their input costs, Mysteel Global notes.
By August 30, China's national price of HRB400E 20mm dia rebar under Mysteel's assessment rallied by Yuan 117/tonne ($16.5/t) from the price on August 20 to Yuan 3,337/t including the 13% VAT. In parallel, Mysteel SEADEX 62% Australian Fines price index for iron ore also gained by $5.1/dmt during the same period to $100.2/dmt CFR Qingdao.
A modest pick-up in steel demand emerged in late August, as suggested by the spot sales of rebar, wire rod and bar-in-coil among the 237 Chinese trading houses surveyed by Mysteel, which increased by 16.7% from mid-August's level to average 120,510 t/d.
Lower output and improved sales saw finished steel stocks at the association's member mills thin by 11.6% or 1.9 million tonnes from August 20 to 14.5 million tonnes by the end of last month, according to CISA. This volume also nudged down 1.2% from the same period last year.
Source:Mysteel Global
