In the first ten days of June, crude steel output by China Iron & Steel Association (CISA) members rose by 2.2pc or 49,176mt from late May averaging 2.34mn mt, according to the association’s release on June 16.
The association also reported that on June 10, finished steel stocks with member mills were higher by 6.1pc from May 31 levels at 14.23mn mt. Steel stocks were also up by 22.5pc from early 2021 levels, according to CISA data.
Iron ore prices rise
On Thursday, prices for 62pc ferrous fines content imported into Northern China jumped up over 3pc to settle at $220.82/mt cfr cfr Qingdao from $214/mt cfr a day prior. Following a recovery in steel futures in the first half of Friday, prices could rise further. Market participants also believe the production numbers could also have turned sentiment positive, aiding the price rise.
The state planner, National Development and Reform Commission (NDRC) released new regulations for price indexation for the commodity to increase scrutiny and avoid unreasonable fluctuations. The commission remains hopeful about recovery in steel demand and crude steel output during the 14th Five-Year Plan.
Environmental protection measures in Tangshan are likely to stay in place and have become more stringent supporting price hike. The government likely to control prices by releasing the country’s reserves of major industrial metals, including copper, aluminium and zinc in batches as required in coming days.