China’s daily crude steel output for the first 10 days of October rose 4% to 1.916 million tonnes compared with the previous period, according to the China Iron & Steel Assn (Cisa).
Output for the preceding 10 days totalled 1.843 million tonnes.
Output from Cisa members also surged 4.9% in early October to 1.584 million tpd.
“It is natural for steelmakers to boost production after a large increase in spot prices,” a trader in Shanghai said.
Private and small-sized mills, which are more flexible in their operations, contributed more to the sudden rise in output, another trader in Tianjin said.
But higher crude steel output is seen as a threat to the market since it will bring with it downward pressure, he noted.
Chinese steel prices have been on the rise since early September.
Hot rolled coil prices in eastern China jumped 340-370 yuan ($54-59) per tonne from the beginning of September to 3,730-3,760 per tonne on Wednesday.