China crude steel output down further in late May, Cisa says
China’s steel output dropped further in the last ten days of May as more steelmakers cut output due to lower prices
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China’s steel output dropped further in the last ten days of May as more steelmakers cut output due to lower prices.
Daily crude steel output eased to an average of 1.960 million tonnes, down from 2.039 million tonnes in the second ten days of May, according to the China Iron and Steel Assn (Cisa).
“Most steelmakers have been doing maintenance since mid-May as they could not bear the losses amid a falling market,” a trader in Shanghai said.
China’s steel output reached a record 2.045 million tpd in the first ten days of May, but prices and sentiment have weakened since then.
Output will keep falling coming weeks, a stockist in Hebei province said, noting there would be further decreases in mid-to late-June.
The Cisa figures are based on an estimate of output. Cisa reported its own members’ production at 1.612 million tonnes, 4.7% lower than the prior period.