China’s daily crude steel output rebounds in late February

China’s daily crude steel output rebounded in late February, raising concerns of oversupply as demand remains weak.

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

The country produced 2.0817 million tpd of crude steel during the last eight days of February, up 5.86% from the second ten days of the month, according to estimates released by the China Iron & Steel Assn (Cisa) on Monday March 10.

Output of Cisa member mills, which are mainly medium-sized and large steelmakers, averaged 1.804 million tpd in late February, up 6.82% from the preceding period.

The rebound was beyond market expectations, as domestic steel demand has not seen any obvious improvement so far, with prices edging lower in late February, sources said.

Eastern Chinese rebar prices were at 3,180-3,230 yuan ($519-527) per tonne including VAT on February 28, down 60-80 yuan ($10-13) per tonne from February 20 levels. Seaborne iron ore prices also fell by $6 per tonne over the same period, according to Steel First’s price archive.

“The larger output will likely weigh on the market further, given the already bearish sentiment spreading over the industry,” a Beijing-based analyst said.

As at February 28, the combined finished steel inventory at Cisa member mills totalled 16.2533 million tonnes, down 5.9% from February 20 levels, but up 39.4% from the beginning of this year, according to the association’s figures.

What to read next
Steel trading and production have come to a halt in the eastern Turkish region of Iskenderun following a devastating earthquake that hit the region on Monday February 6 and put mills in the area under force majeure, sources told Fastmarkets on Tuesday
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed