China’s daily average crude steel output fell to 2.263mn mt in late-June, down by 5.51 from the prior 10-day or mid-June on stricter production curbs ahead of the centennial year celebrations. Daily crude steel production was up by 11.68pc from the prior year period, according to CISA data.
|China’s average daily output in late-June (mn mt)|
Production level in year over year comparison is elevated, also, due to a lower base amid the impact of the COVID-19 pandemic last year.
Daily steel products’ output rose to 2.281mn mt in late-June, up by 11.18pc from the prior year, while down marginally from mid-June. Pig iron production was at 1.937mn mt, up by 9.72pc from the prior year, while down by 6.24pc from the prior 10-day period.
Key steelmakers’ cumulative crude steel production in June rose to 70.044mn mt at average daily crude steel output of 2.334mn mt, up by 14.05pc from the prior-year period, while down by 0.84pc from the prior month. Steel products output rose to 67.778mn mt at a rate of 2.259mn mt, up by 15.26pc from a year ago, while down 1.42pc from the prior month.
Meanwhile, steel prices continued to fall in last week of June as per China’s Ministry of Commerce. Average steel prices for high-speed wire rod, ordinary medium plate, and rebar were CNY5,200/mt, CNY5,340/mt and CNY4,917/mt per ton, down 0.8pc, 0.7pc and 0.6pc respectively, from the prior week.
Steel demand is expected to be muted in July due to rainy weather impacting construction work and real estate industry. Also, the auto industry is struggling with the shortage semiconductors that has slowed production.