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).
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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.