China crude steel output rises in June, Cisa says

China crude steel output rose in the first ten days of June as domestic steel prices started to stabilize, according to estimates from the China Iron and Steel Assn (Cisa).

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

Daily crude steel output climbed to an average of 1.999 million tonnes, up 2% from 1.960 million tonnes in the last ten days of May, Cisa said.

But it remains lower than the all-time high of 2.045 million tpd in the first ten days of May.

“Some steelmakers have ramped up production after steel prices have seen fewer decreases since early June,” a trader in Shanghai said.

They are speculating on a possible turnaround in the steel market prices, he added.

Cisa also reported its own members’ daily production at 1.685 million tonnes, up by 4.5% from the previous period.

The increase in output will put downward pressure on steel prices, market participants said.

Producers need to trim production to 1.8-1.9 million tpd in coming months so that Chinese spot steel prices could rebound or bottom out, according to a major stockist in Tianjin.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.