Posted on 17 Dec 2020
Daily crude steel output among the member mills of the China Iron & Steel Association (CISA) increased over December 1-10 to an average of 2.2 million tonnes/day, up by 4.6% from that for the prior ten days and reversing the continuous decline since late October, according to the association’s latest data released on December 15.
Behind the growth in production among China’s medium- and large-sized steel mills was stepped-up output from electric arc furnace-based steelmakers, as the EAF-mills in East and South China are still earning handsome profits of around Yuan 200/tonne ($30.6/t), Mysteel Global noted.
The capacity utilization rate among the 71 independent EAF steelmakers across the country tracked by Mysteel has increased for five successive weeks by a total of 4.26 percentage points to reach 61.35% as of December 10, according to Mysteel’s weekly survey.
More generally, average daily steel output among the CISA member steel mills in early December was 12% higher on year, mainly as the restrictions on steelmakers’ operations this year to control pollution are not proving as tight as last year’s, and most mills are eager to maintain scheduled production to the largest extent possible as they have been making moderate profits.
For November, the profit margin for rebar earned by the 91 blast furnace-based mills Mysteel monitors averaged Yuan 147/t, up by a huge Yuan 128/t on month, while that for hot-rolled coils improved by an even larger Yuan 204/t to average Yuan 250/t, as reported.
Perhaps not surprisingly, the higher production saw finished steel stocks held by CISA’s member mills increase over December 1-10, with the tonnage gaining 1.3 million tonnes or 11.5% from ten days earlier to 12.7 million tonnes, or 13.1% higher on year, according to CISA.
CISA estimated that based on its member mills’ data, the country’s total daily crude steel output over December 1-10 would inch up 0.8% from that over November 21-30 to 2.91 million t/d, a jump of 10.3% on year.
Over early December, the national price of HRB 400 20mm dia rebar remained generally stable, losing a mere Yuan 4/t from November 30 to reach Yuan 4,095/t including the 13% VAT as of December 10, according to Mysteel’s data.
Written by Anna Wu, wub@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
Source:Mysteel Global
