China’s daily crude steel output rebounds in early August

China’s crude steel output rebounded in early August after falling steadily since late June, as a recovery in steel prices in the latter part of last month led producers to up production.

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 1.717 million tpd during the first ten days of this month, up 3.6% from the preceding eleven days, according to estimates by the industry body released late on Wednesday August 19.

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

The higher output was mainly due to an increase in steel prices in late July and early August, market sources suggested.

Eastern Chinese rebar prices, for instance, started increasing from July 24 and gained a total of 290 yuan ($45) per tonne to peak at 2,150-2,210 yuan ($336-345) per tonne on August 6, according to Steel First’s price archives.

Prices began to retreat after that, however, since the seasonally weak demand could not sustain the rapid increases.

The rebound in production could add more pressure to spot prices over the next few days, market participants told Steel First.

As at August 10, Cisa member mills had a total of 15.51 million tonnes of finished steel in their inventories, up 2.6% from July 31 levels, the association’s data shows.

What to read next
Fastmarkets advises that, as of Friday June 9, some regional ferrous scrap prices and markets have not settled for June; Fastmarkets typically settles these markets on or before the 10th of each month.
Fastmarkets proposes to amend the specifications for its weekly payable indicators for black mass in South Korea.
Learn why delayed universal definitions of green steel means pricing green steel remains a challenge
Fastmarkets has launched two new Green Steel prices for the European domestic market, starting Thursday June 8.
Learn more on why advancements in “green steel” considered unachievable in geographical isolation and require the collaboration of all stakeholders in all regions if they are to succeed.
Fastmarkets has corrected the rand fixing prices for LME-traded base metals, which were published incorrectly on Tuesday June 6 due to a technical error.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed