China’s average daily crude steel production by key producers dipped to 2.286mn mt in late-May (May 21-31), down by 3.92pc from mid-May and up by 9.25pc from a year ago, according to the data released by China Iron and Steel Association (CISA).
In late May, major steel producers in Chinese lowered production from the prior 10-day period for the second consecutive time. The drop in output indicates a move towards holding back production in the absence of export rebate and stricter warning from authorities to avoid speculation of steel prices.
|China’s average daily output in mid-May (mn mt)|
In late May, daily steel products’ output rose to 2.301mn mt, marginally up from mid-May and up by 11.26pc from the prior year. Pig iron production was at 1.961mn mt, down by 3.86pc from the prior 10-day period and up by 5.70pc from the prior year. CISA compiles production data from around 90 statistically significant steel producers across China.
Key steelmakers produced 72.989mn mt of crude steel in May, at a daily average of 2.354mn mt, up by 1.31pc from the prior period and up by 13.58pc from the prior year. Steel products output rose to 71.043mn mt, up by 1.75pc from the prior period and up by 15.20pc from a year ago.
Steel inventories at key producers in late-May hit 13.406mn mt, down 1.233mn mt or 8.43pc from mid-May, while down by 0.06pc or 7800mt from the end of April. Inventories are up by 15.36pc or 1.785mn mt from the beginning of the year.