China’s daily crude steel output rose to 2.399mn mt in late-April (April 20-30), up by 3.25pc from mid-April as steelmakers margins widened on robust domestic steel demand as well as prices.
Compared to a year ago, crude steel production rose by 19.27pc in late-April, according to data released by China Iron and Steel Association (CISA), which compiles production data from around 90 statistically significant steel producers across China. Production level in year over year comparison is elevated due to a lower base last year due to the impact of COVID-19.
Steelmakers in China ramped production as healthy demand outlook and production cuts are supporting domestic steel prices. Daily steel products output in late-April rose to 2.467mn mt, up by 11.47pc from mid-April and up by 20.82pc from a year ago.
| China’s average daily output in late-April (mn mt) | ||||
|---|---|---|---|---|
| Production | Late-Apr | Mid-Apr | Change | Change (YoY) |
| Crude Steel | 2.399 | 2.324 | 3.25% | 19.27% |
| Pig iron | 2.019 | 1.986 | 1.69% | 9.89% |
| Steel | 2.467 | 2.213 | 11.47% | 20.82% |
Pig iron production rose to 2.019mn mt, down by 1.69pc from the prior 10-day period and up by 9.89pc from the prior year.
Key steelmakers cumulative crude steel production in April rose to 69.72mn mt at an average daily crude steel output of 2.324mn mt, up by 4.91pc from March, while up by 19.68pc from the prior April. Steel products output was 67.57mn mt at a rate of 2.252mn mt, up by 5.76pc from the prior month and up by 19.36pc from the prior April.
Steel inventories at key producers in late-April fell to 13.413mn mt, down by 15.6pc or 2.495mn mt from mid-April. Inventories are down by 8.79pc or 1.293mn mt from the end of March and down by 8.92pc or 1.314mn mt from the prior year period.