Posted on 19 Dec 2022
Daily crude steel production among member mills of China Iron & Steel Association (CISA) eased over December 1-10 after rising during the prior two 10-day periods, down by 2.1% or 41,800 tonnes/day from late November to average 1.99 million t/d, according to the association's release on December 15.
The dip was chiefly because more steel producers conducted maintenance works due to profit losses or the expectation of shrinking demand in the low season for steel consumption, sources explained.
CISA tracks its member mills' steel output three times a month, and based on the latest result, it estimated that China's total daily crude steel output averaged 2.46 million t/d during the first 10 days of December, down 0.9% from November 21-30.
As of December 10, finished steel stocks at the member mills reversed up 0.3% or 37,600 tonnes from November 30 to 15.3 million tonnes, or 35.8% higher from the end of 2021, according to the release.
Mysteel's survey among 247 blast-furnace and 85 electric-arc-furnace steelmakers across China showed a similar trend over the same period, as their daily steel output during early December slipped by 0.4% or 11,200 t/d from the previous 10 days to average 2.71 million t/d.
In early December, the daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among 237 Chinese trading houses under Mysteel's survey recovered by 6.2% or 8,499 t/d from that for late November to average 144,518 t/d, thanks to the improvement in long steel spot sales amid the optimization of the country's COVID policies.
Meanwhile, Chinese steel prices had shown signs of recovery during early December, with the national price of HRB400E 20mm dia rebar for example, rising Yuan 53/tonne ($7.6/t) from November 30 to Yuan 3,999/t including the 13% VAT as of December 9, according to Mysteel's assessment.
Source:Mysteel Global
