China crude steel output rises in June, Cisa says

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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.