Posted on 26 Sep 2022
Daily crude steel output among the member mills of the China Iron & Steel Association (CISA) during the middle ten days of September continued the rise that began in early August to hit a three-month high of 2.15 million tonnes/day, according to the association's latest release on Friday morning. Average daily output during September 11-20 was higher by another 2.2% or 46,800 t/d from the first ten days of this month, it noted.
Market sources attributed the rise in output to the fact that some Chinese blast-furnace makers had steadily ramped up production during the period after previously curbing their operations.
Based on its member-mill results, CISA also estimated the country's daily crude steel output averaged 2.86 million t/d during mid-September, higher by 1.5% from September 1-10.
Mysteel's survey among a larger group of the 332 Chinese steel mills comprising 247 BF and 85 electric-arc-furnace mills was in line with CISA's analysis, as their daily crude steel output in mid-September had hit a three-month high of 2.89 million t/d on average, up 0.9% or 25,900 t/d from the prior ten days, as reported.
Chinese finished steel prices softened during mid-September as actual demand from end-users in East China was impeded by the impact of Typhoon Muifa. For example, the country's national price of HRB400E 20mm dia rebar declined by Yuan 29/tonne ($4.1/t) from that on September 9 to reach Yuan 4,106/t including the 13% VAT as of September 20.
In mid-September, the daily trading volume of rebar, wire rod and bar-in-coil among the 237 Chinese trading houses under Mysteel's tracking had reversed down by 13,477 t/d or 7.9% from early September.
Meanwhile, the higher output and the falloff in spot sales saw the member mills' finished steel stocks mount further as of September 20, swelling by another 3.5% or 596,500 tonnes from September 10 to total 17.7 million tonnes by that day.
Source:Mysteel Global
