Posted on 09 Jan 2023
Daily crude steel output among the member mills of the China Iron & Steel Association (CISA) declined further during December 21-31 to hit the lowest average since early August, according to the latest data released by the association on January 6. Daily output during last month's last 11 days dropped by another 2.4% or 47,900 tonnes/day from mid-December to average 1.92 million t/d.
The further dip reflected the fact that more domestic steel producers, especially electric-arc-furnace (EAF) mills, had commenced maintenance stoppages or slowed their production during the period, sources said.
Based on the latest statistics, CISA estimated that the country's daily crude steel output averaged 2.41 million t/d during late December, slipping by 1.7% from the prior ten days.
In tandem, finished steel stocks at these member mills thinned by 18.4% or 2.9 million tonnes from December 20 to settle at 13.1 million tonnes as of December 31, according to the release.
Meanwhile, Mysteel's survey among 247 blast-furnace and 85 EAF makers nationwide showed a similar trajectory during the same period, as their daily steel output slipped by 1.3% or 35,400 t/d from mid-December to average 2.71 million t/d for late December.
The country's steel demand shrank further in last month, as suggested by the daily trading volume of rebar, wire rod and bar-in-coil among the 237 Chinese trading houses under Mysteel's tracking. The trading volume slumped by 20% or 27,934 t/d from that for mid-December to average 112,108 t/d.
On the other hand, Chinese steel prices trended upwards over the same period, with the national price of HRB400E 20mm dia rebar for example, moving up by Yuan 63/tonne ($9.2/t) from that on December 20 to Yuan 4,164/t including the 13% VAT as of December 30.
Source:Mysteel Global
