China’s crude steel output largely flat in end-November

China’s crude steel output was largely flat during the last ten days of November.

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

Member mills of the China Iron & Steel Assn (Cisa) produced crude steel at an average rate of 1.61 million tpd, down a negligible 0.3% from the preceding ten days, according to estimates from the industry body reported on Friday December 11.

Cisa member mills, which are mainly medium-sized steelmakers, account for roughly 80% of the country’s output.

Mills have come under increasing pressure to cut output this year as spot steel prices sink to new lows amid an oversupplied sector. However, record-low iron ore prices have allowed steelmakers some leeway with lower input costs.

Metal Bulletin’s index for 62% Fe iron ore was calculated at $42.97 per tonne cfr China on November 30, down almost $2 from prices ten days earlier 40% lower compared with the start of the year.

Grade III 16-25mm rebar was trading at 1,750-1,780 yuan ($272-276) per tonne in Shanghai on November 30, down 30 yuan ($5) from levels on November 20.

As at November 30, Cisa member mills had a total of 14.4 million tonnes in combined finished steel inventory, down 5% from the previous ten-day period.