China’s daily average crude steel output fell to 2.257mn mt in late-August (21-31), down by 3.99pc from mid-August, according to CISA data. Production was down by 4.98pc from last year, amid directions to maintain output levels below 2020 levels through the second half of 2021.
This is contrary to the ramp up in production in the prior 10-days, which lifted the daily average up by 4pc from early-August. Steel demand in the domestic market weakened amid a slowdown in the construction sector.
| China’s average daily output in late-August (mn mt) | ||||
|---|---|---|---|---|
| Production | Early-August | Mid-August | Change | Change (YoY) |
| Crude Steel | 2.257 | 2.138 | -3.99% | -4.98% |
| Pig iron | 1.999 | 1.871 | -2.85% | -5.60% |
| Steel | 2.302 | 2.061 | 1.54% | -4.59% |
Daily steel products’ output rose to 2.302mn mt in late-August, up by 1.54pc from mid-August and down by 4.59pc from the prior year. Pig iron production was at 1.999mn mt, down by 2.85pc from the prior 10-day period, while down by 5.6pc from the prior year. CISA compiles production data from around 90 statistically significant steel producers across China.
Key steelmakers’ cumulative crude steel production in August fell to 65.088mn mt, down by 2.27pc from the prior-year period. Steel products’ output declined to 63.495mn mt, down by 2.01pc from a year ago.
Steel inventories at key producers decreased due to the rise in production. In late-August, steel inventories fell to 13.427mn mt, down by 10pc or 1.507mn mt from mid August. Inventories declined by 2.8pc or 386,500mt from the end of July.