China’s daily crude steel output breached 2m tonnes in mid-February, Cisa says

China’s daily crude steel output hit 2 million tonnes in mid-February, up 0.9% from the first 10 days of the month, according to China Iron & Steel Assn’s (Cisa) estimates.

The output averaged 2.006 million tpd during the second 10 days of February, compared with 1.9889 million tpd in the preceding period.

It was the first time that output went above the 2-million-tonne mark after dropping below it in late May 2012.

Daily output of Cisa members was up 1.01% to 1.719 million tonnes in mid-February.

“Chinese mills were using relatively cheaper iron ore in mid-February. Major mills had also been making ex-works hikes since November. Good profit margins encouraged them to produce more,” an industry analyst in Beijing said.

Market trading, however, was suspended in mid-February due to the Chinese New Year holiday. The high output will increase pressure on the supply side.

Major mills’ inventory is now at its highest since August, the analyst added.

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