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The country produced 2.144 million tpd of crude steel in the first ten days of November, up 2.2% from the last 11 days of October, according to estimates released by China Iron & Steel Assn (Cisa) on Monday November 18.
Output of Cisa member mills – mainly medium-sized and large steelmakers – averaged 1.763 million tpd in early November, up 3.5% from late October.
“China’s daily crude steel output is back above 2.1 million tpd soon after the decline in the preceding period. I think the production rebound could be due to the price recovery see in late October and early November,” a Beijing-based market observer said.
Rebar prices in the Shanghai market were at 3,550-3,650 yuan ($579-595) per tonne on November 15, up 160-180 yuan ($26-29) per tonne compared with those on October 31, according to Steel First’s price archive.
“I’m disappointed that production levels bounced back as soon as prices saw gains. This means inventory levels will rise and prices will be under downward pressure again,” a source at a northern Chinese mill told Steel First.
Cisa member mills’ inventory totalled 12.926 million tonnes as at November 10, up 0.39% from October 31 levels, according to figures from the association.
China’s daily crude steel output rebounded in early November following a price recovery since the end of October.