China’s average daily crude steel production rose by 13.49pc in mid-December to 2.201mn mt from a year ago, but slipped by 0.4pc from early-December, according to data released by China Iron and Steel Association (CISA). Besides the usual winter production curbs, this December, steel producers in China are also facing a shortage of coal and electricity due to peak demand amid colder winter.
Steel production in the past 10-days have remained stable despite production cuts to control air-pollution but producers are challenged by margin squeeze due to record high raw material prices. China produced 87.66mn mt crude steel in November, up 8pc from the prior year.
Daily steel products’ output increased to 2.136mn mt, up by 13.60pc from the prior year and up by 2.01pc from early-December. Pig iron production was at 1.935mn mt, up 11.79pc from the prior year, while down by 0.77pc from the prior 10-day period. CISA compiles production data from around 90 statistically significant steel producers across China.
|China’s average daily output in mid-Dec (mn mt)|
In the first 20-days of December, key producers 44.043mn mt crude steel, up by 12.73pc from the prior year period. Pig iron production rose by 11.37pc to 38.853mn mt and steel product output rose by 13.15pc to 42.315mn mt from the prior year period.
Steel inventories at key producers in mid-December stood at 13.05mn mt, an increase of 2.92pc or 351,800mn mt from early-December Inventories are up by 18.54pc or 2.04mn mt from the prior year.