China’s daily crude steel output rose to 2.319mn mt late-February, up 14.07pc from a year ago on increased production post-Lunar New Year holidays, according to CISA data. Compared to mid-February, daily crude steel output was up by 0.85pc, which shows that Chinese mills have continued to maintain high utilization levels despite high inventory. In mid-February, production was up 3.49pc from early-February.
Production level in year over year comparison is elevated, also, due to a lower base amid the impacted of the COVID-19 pandemic last year. Mills ramped up production despite high finished inventories on the back of a strong demand outlook supported by China’s robust infrastructure spend.
Daily steel products’ output rose to 2.3920mn mt in late-February, up by 18.66pc from the prior year and up by 11.52pc from mid-February. Pig iron production was at 2.049mn mt, up by 5.94pc from the prior year, while down by 0.67pc from the prior 10-day period.
| China’s average daily output in late-Feb (mn mt) | ||||
|---|---|---|---|---|
| Production | Late-Feb | Mid-Feb | Change | Change (YoY) |
| Crude Steel | 2.319 | 2.282 | 0.85% | 14.07% |
| Pig iron | 2.049 | 2.020 | 0.67% | 5.94% |
| Steel | 2.392 | 2.120 | 11.52% | 18.66% |
CISA compiles production data from around 90 statistically significant steel producers across China. Key steelmakers cumulative crude steel production in February rose to 63.298mn mt at average daily crude steel output of 2.260mn mt, up by 17.20pc from the prior-year period and up by 1.54pc from the prior month. Steel products output rose to 60.897mn mt at a rate of 2.174mn mt, up by 20.24pc from a year ago and 3.12pc from the prior month.
Steel inventories at key producers in late-February fell to 16.410mn mt, down by 6.48pc or 1.135mt from mid-February. Inventories are higher by 19.24pc or 2.648mn mt from the prior month-end.